technical report and resource estimate on the schaft creek ... · the schaft creek mine project...

Report to:

COPPER FOX METALS INC.

Technical Report and Resource Estimate on the Schaft Creek Cu-Au-Mo-Ag Project, BC, Canada

Document No. 1153440200-REP-R0001-01

1153440200-REP-R0001-01

Report to:


TECHNICAL REPORT AND RESOURCE ESTIMATE ON THE SCHAFT CREEK CU-AU-MO-AG PROJECT, BC, CANADA

EFFECTIVE DATE: MAY 23, 2012

Prepared by Robert Morrison, Ph.D., MAusIMM (CP), P.Geo. Laura Karrei, M.Sc., P.Geo.

Suite 900, 330 Bay Street, Toronto, Ontario M5H 2S8 Phone: 416-368-9080 Fax: 416-368-1963

1153440200-REP-R0001-01

Report to:


TECHNICAL REPORT AND RESOURCE ESTIMATE ON THE SCHAFT CREEK CU-AU-MO-AG PROJECT, BC, CANADA

EFFECTIVE DATE: MAY 23, 2012

Prepared by

“Original document signed by Robert Morrison, Ph.D., MAusIMM

(CP), P.Geo.”

Date June 21, 2012

Robert Morrison, Ph.D., MAusIMM (CP), P.Geo.

Prepared by “Original document signed by Laura Karrei, M.Sc., P.Geo.” Date June 21, 2012

Laura Karrei, M.Sc., P.Geo.

Reviewed by “Original document signed by Jeff Wilson, Ph.D., P.Geo.” Date June 21, 2012

Jeff Wilson, Ph.D., P.Geo.

Authorized by “Original document signed by Jeff Wilson, Ph.D., P.Geo.” Date June 21, 2012

Jeff Wilson, Ph.D., P.Geo.

JW/jc

Suite 900, 330 Bay Street, Toronto, Ontario M5H 2S8 Phone: 416-368-9080 Fax: 416-368-1963

1153440200-REP-R0001-01

R E V I S I O N H I S T O R Y

REV. NO ISSUE DATE

PREPARED BY AND DATE

REVIEWED BY AND DATE

APPROVED BY AND DATE DESCRIPTION OF REVISION

00 2012/06/06 Robert Morrison Laura Karrei

Jeff Wilson Jeff Wilson Draft to Client for review.

01 2012/06/21 Robert Morrison Laura Karrei

Jeff Wilson Jeff Wilson Final to Client.

i 1153440200-REP-R0001-01

T A B L E O F C O N T E N T S

1.0 SUMMARY .......................................................................................................................... 1 1.1 PROPERTY DESCRIPTION ...................................................................................................... 1 1.2 GEOLOGY AND MINERALIZATION ............................................................................................ 1 1.3 STATUS OF EXPLORATION ..................................................................................................... 2 1.4 RESOURCE ESTIMATE ........................................................................................................... 2 1.5 CONCLUSIONS AND RECOMMENDATIONS ............................................................................... 6

2.0 INTRODUCTION ................................................................................................................. 7 2.1 TERMS OF REFERENCE AND PURPOSE OF REPORT ................................................................ 7

2.1.1 UNITS OF MEASUREMENT ..................................................................................... 8 2.2 EFFECTIVE DATE .................................................................................................................. 8 2.3 INFORMATION AND DATA SOURCES ........................................................................................ 8

3.0 RELIANCE ON OTHER EXPERTS ..................................................................................... 9

4.0 PROPERTY DESCRIPTION AND LOCATION ................................................................. 10 4.1 LOCATION ........................................................................................................................... 10 4.2 PROPERTY DESCRIPTION – MINERAL TENURES AND AGREEMENTS ....................................... 13 4.3 COMMUNITY RELATIONS AND THE CASSIAR ISKUT-STIKINE LAND AND RESOURCE

MANAGEMENT PLAN ............................................................................................................ 16 4.4 SOCIO-ECONOMIC AND ENVIRONMENTAL STUDIES AND ISSUES ............................................. 16 4.5 PERMITS ............................................................................................................................. 18

4.5.1 CURRENT PERMITS ............................................................................................ 18 4.5.2 PERMITS TO SUPPORT PROJECT DEVELOPMENT ................................................. 19 4.5.3 OTHER PERMITS ................................................................................................ 21

4.6 TETRA TECH COMMENTS ..................................................................................................... 22

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .............................................................................................................. 23 5.1 ACCESSIBILITY .................................................................................................................... 23 5.2 CLIMATE AND PHYSIOGRAPHY ............................................................................................. 23 5.3 LOCAL RESOURCES AND INFRASTRUCTURE ......................................................................... 24

5.3.1 EXISTING INFRASTRUCTURE ............................................................................... 24 5.3.2 PROPOSED INFRASTRUCTURE ............................................................................ 25

6.0 HISTORY ........................................................................................................................... 27

7.0 GEOLOGICAL SETTING AND MINERALIZATION .......................................................... 31 7.1 GEOLOGICAL SETTING ........................................................................................................ 31

7.1.1 REGIONAL GEOLOGY ......................................................................................... 31 7.1.2 PROPERTY GEOLOGY ........................................................................................ 33

7.2 MINERALIZATION ................................................................................................................. 40

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7.2.1 MAIN (LIARD) ZONE ............................................................................................ 40 7.2.2 BRECCIA (PARAMOUNT & WEST BRECCIA) ZONE ................................................ 41

7.3 PROSPECTS ........................................................................................................................ 42

8.0 DEPOSIT TYPES .............................................................................................................. 43 8.1 DEPOSIT MODEL ................................................................................................................. 43 8.2 RECENT WORK ................................................................................................................... 46

9.0 EXPLORATION ................................................................................................................. 48 9.1 PHOTOGRAMMETRY SURVEY, 2005 ..................................................................................... 48 9.2 GEOLOGICAL MAPPING, 2007 .............................................................................................. 48 9.3 GEOPHYSICAL SURVEYS, 2007 ............................................................................................ 48 9.4 QUANTEC TITAN-24 DCIP AND MT SURVEYS, 2010-2011 .................................................... 49

9.4.1 PHASE I ............................................................................................................. 49 9.4.2 PHASE II ............................................................................................................ 50 9.4.3 PHASE III ........................................................................................................... 51 9.4.4 OVERALL SIGNIFICANT RESULTS ........................................................................ 52

9.5 AIRBORNE MAGNETIC SURVEY, 2011 AND 2012 ................................................................... 56 9.5.1 PHASE I, 2011 ................................................................................................... 56 9.5.2 PHASE II, 2012 .................................................................................................. 58

9.6 RE-LOGGING AND SAMPLING OF HISTORIC CORE, CAMBRIA 2011 ......................................... 58 9.7 LITHOGEOCHEMICAL STUDY, CAMBRIA 2011 ........................................................................ 59 9.8 3D GEOLOGICAL MODEL, CAMBRIA 2011 ............................................................................. 61 9.9 OTHER STUDIES ................................................................................................................. 61

10.0 DRILLING .......................................................................................................................... 62 10.1 2005 DRILLING PROGRAM ................................................................................................... 62 10.2 2006 DRILLING PROGRAM ................................................................................................... 64 10.3 2007 DRILLING PROGRAM ................................................................................................... 68 10.4 2008 DRILLING PROGRAM ................................................................................................... 72 10.5 2010 DRILLING PROGRAM ................................................................................................... 76 10.6 2011 DRILLING PROGRAM ................................................................................................... 79 10.7 OTHER COMMENTS ............................................................................................................. 84

10.7.1 GROUND CONDITIONS AND CORE RECOVERY ..................................................... 84 10.7.2 COLLAR LOCATION SURVEY ............................................................................... 85 10.7.3 DOWNHOLE DIRECTIONAL SURVEY ..................................................................... 85 10.7.4 METALLURGICAL TEST WORK ............................................................................. 86 10.7.5 TETRA TECH COMMENTS ................................................................................... 86

11.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ............................................... 87 11.1 SAMPLING METHODS........................................................................................................... 87

11.1.1 GEOCHEMICAL SAMPLES .................................................................................... 87 11.1.2 PIT AND TRENCH SAMPLING ............................................................................... 87 11.1.3 CORE SAMPLING ................................................................................................ 88

11.2 ANALYTICAL AND TEST LABORATORIES ................................................................................ 90 11.2.1 ASSAY LABORATORIES ....................................................................................... 90

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11.3 SAMPLE PREPARATION AND ANALYSIS ................................................................................. 91 11.3.1 LEGACY PROGRAMS .......................................................................................... 91 11.3.2 COPPER FOX PROGRAMS................................................................................... 92

11.4 QUALITY ASSURANCE AND QUALITY CONTROL ..................................................................... 94 11.4.1 LEGACY PROGRAMS .......................................................................................... 94 11.4.2 COPPER FOX QA/QC PROGRAMS ...................................................................... 94

11.5 DATABASES ........................................................................................................................ 98 11.6 SAMPLE SECURITY AND STORAGE ....................................................................................... 99 11.7 DENSITY MEASUREMENTS ................................................................................................. 100 11.8 GEOTECHNICAL DRILLING .................................................................................................. 101 11.9 COMMENTS....................................................................................................................... 101

12.0 DATA VERIFICATION .................................................................................................... 102 12.1 DATABASE VERIFICATION .................................................................................................. 102 12.2 TETRA TECH SITE VISIT ..................................................................................................... 109

13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ....................................... 123 13.1 METALLURGICAL TEST WORK ............................................................................................ 123

13.1.1 2005 PRA TEST WORK ON LEGACY CORE ........................................................ 124 13.1.2 2005-2006 PRA TEST WORK ON 2005 DRILL CORE ......................................... 124 13.1.3 2006 HAZEN TESTWORK ON 2005 DRILL CORE (MATERIAL) .............................. 125 13.1.4 CESL TESTWORK ON 2005 DRILL CORE DERIVED MATERIAL ............................ 125 13.1.5 2007 PRA TESTWORK ON 2006 DRILL CORE MATERIAL .................................... 126 13.1.6 2007 HAZEN TESTWORK ON 2006 DRILL CORE MATERIAL ................................. 126 13.1.7 2008-2009 G&T TESTWORK ON 2006 DRILL CORE MATERIAL ........................... 126 13.1.8 2008-2009 POLYSIUS HPGR TESTWORK ON 2006 DRILL CORE MATERIAL ........ 127 13.1.9 2011-2012 ROUGHER FLOTATION TEST WORK ................................................. 128

13.2 PROCESS DESIGN ASSUMPTIONS ...................................................................................... 128 13.3 RECOVERY ESTIMATES ..................................................................................................... 128 13.4 METALLURGICAL VARIABILITY ............................................................................................ 129 13.5 DELETERIOUS ELEMENTS .................................................................................................. 129

14.0 MINERAL RESOURCE ESTIMATES .............................................................................. 130 14.1 PREVIOUS RESOURCE ESTIMATES ..................................................................................... 130 14.2 INTRODUCTION ................................................................................................................. 131

14.2.1 GEOLOGICAL INTERPRETATION ......................................................................... 132 14.3 DATA ................................................................................................................................ 132 14.4 DOMAINS .......................................................................................................................... 133

14.4.1 WIREFRAMES .................................................................................................. 133 14.5 EXPLORATORY DATA ANALYSIS ......................................................................................... 137

14.5.1 SCATTER PLOTS .............................................................................................. 137 14.5.2 QUANTILE-QUANTILE PLOTS ............................................................................. 139 14.5.3 ASSAYS AND STATISTICS .................................................................................. 142 14.5.4 OUTLIER MANAGEMENT AND CAPPING STRATEGY ............................................. 142 14.5.5 DRILLHOLE COMPOSITING ................................................................................. 148

14.6 DENSITY ........................................................................................................................... 148

iv 1153440200-REP-R0001-01

14.7 SPATIAL ANALYSIS ............................................................................................................ 149 14.7.1 VARIOGRAPHY ................................................................................................. 149

14.8 INTERPOLATION PLAN – KRIGING PARAMETERS .................................................................. 153 14.8.1 ESTIMATION PARAMETER FILE .......................................................................... 153 14.8.2 SEARCH AND SAMPLE PARAMETER FILE ........................................................... 153 14.8.3 VARIOGRAPHY PARAMETER FILE ...................................................................... 153

14.9 RESOURCE BLOCK MODEL ................................................................................................ 157 14.9.1 CONFIGURATION .............................................................................................. 157 14.9.2 CELL ATTRIBUTES ............................................................................................ 157 14.9.3 INTERPOLATION ............................................................................................... 158

14.10 MODEL VALIDATION .......................................................................................................... 158 14.10.1 STATISTICS ...................................................................................................... 158 14.10.2 SECTIONS ........................................................................................................ 159 14.10.3 SWATH PLOTS ................................................................................................. 163

14.11 MINERAL RESOURCE CLASSIFICATION ............................................................................... 166 14.11.1 INTRODUCTION ................................................................................................ 166 14.11.2 THEORETICAL SLOPE OF REGRESSION ............................................................. 166

14.12 MINERAL RESOURCE TABULATION ..................................................................................... 168 14.12.1 CUT-OFFS ....................................................................................................... 168 14.12.2 RESOURCE TABLES AND IMAGES ...................................................................... 169 14.12.3 GRADE – TONNAGE CURVES ............................................................................ 179 14.12.4 GRADE – METAL CURVES ................................................................................. 182

15.0 ADJACENT PROPERTIES ............................................................................................. 185

16.0 OTHER RELEVANT DATA AND INFORMATION .......................................................... 186

17.0 INTERPRETATION AND CONCLUSIONS ..................................................................... 187

18.0 RECOMMENDATIONS ................................................................................................... 189 18.1 PHASE 1 WORK PROGRAM ................................................................................................ 189 18.2 PHASE II WORK PROGRAM ................................................................................................ 191 18.3 OTHER RECOMMENDATIONS .............................................................................................. 193

19.0 REFERENCES ................................................................................................................ 196

20.0 CERTIFICATE OF QUALIFIED PERSON ....................................................................... 201

A P P E N D I C E S

APPENDIX A MINERAL TENURES APPENDIX B GEOLOGICAL MAPS APPENDIX C SCHAFT CREEK DATAMINE MACRO MAY 2012 APPENDIX D SCHAFT CREEK VARIOGRAPHY

v 1153440200-REP-R0001-01

APPENDIX E SCHAFT CREEK MODEL PLANS AND SECTIONS APPENDIX F SCHAFT CREEK SWATH PLOTS APPENDIX G GRADE – TONNAGE CURVES APPENDIX H GRADE – METAL CURVES

L I S T O F T A B L E S

Table 1.1 Summary of the Schaft Creek Resource – Liard and Paramount Zones Combined .............................................................................................................. 4

Table 4.1 Mineral Tenures Defining the Property ............................................................... 13 Table 6.1 Summary of Ownership and Exploration Activities, 1957-2002 ......................... 27 Table 6.2 Summary of Historic Drilling ................................................................................ 29 Table 9.1 Survey Line Lengths............................................................................................ 49 Table 9.2 Lithological Grouping from Geochemical Analysis ............................................. 60 Table 10.1 Summary of 2005 Drillholes ................................................................................ 63 Table 10.2 Summary of 2006 Drillholes ................................................................................ 65 Table 10.3 Summary of 2007 Drillholes ................................................................................ 69 Table 10.4 Highlights of 2007 Assay Results ....................................................................... 72 Table 10.5 Summary of 2008 Drillholes ................................................................................ 73 Table 10.6 Highlights of 2008 Assay Results ....................................................................... 76 Table 10.7 Summary of 2010 Drillholes ................................................................................ 77 Table 10.8 Highlights of 2010 Assay Results ....................................................................... 79 Table 10.9 Summary of 2011 Drillholes ................................................................................ 81 Table 10.10 Highlights of 2011 Assay Results ....................................................................... 83 Table 10.11 Core Recovery Statistics ..................................................................................... 85 Table 11.1 Summary of the Performance of Field Duplicates for the Copper Fox

Drillholes .............................................................................................................. 95 Table 11.2 Summary of the Performance of Coarse Duplicates for the Copper Fox

Drillholes .............................................................................................................. 96 Table 11.3 Summary of the Performance of CRMs .............................................................. 97 Table 12.1 Corrections Made to End of Hole Records in Database ................................... 103 Table 12.2 Corrections Made to Survey Table of Database ............................................... 104 Table 12.3 Duplicate Collar Survey Readings – One Entry from Each Drillhole

Removed from Database .................................................................................. 104 Table 12.4 Correction Made to Sample Interval ................................................................. 105 Table 12.5 Value Not Imported into Assay Table of Master Database ............................... 106 Table 12.6 Assaying Laboratory Detection Limits and Conversion Factors Used for

Database and the Resource Estimate .............................................................. 107 Table 12.7 Intervals of Core Examined ............................................................................... 116 Table 12.8 Tetra Tech Check Samples (Pulps/Rejects) ..................................................... 117 Table 13.1 Summary of Test Work ..................................................................................... 123 Table 13.2 Locked Cycle Results, PRA2005 Work............................................................. 125 Table 13.3 Comminution Testing, Hazen 2006 Work ......................................................... 125 Table 14.1 Mineral Resource and Reserve Estimates........................................................ 130 Table 14.2 Mineral Resource Estimate, Effective Date May 1, 2011 ................................. 131 Table 14.3 Wireframes used in the Resource Model .......................................................... 133

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Table 14.4 Raw Assay Statistics for Liard Zone ................................................................. 142 Table 14.5 Raw Assay Statistics for Paramount Zone........................................................ 142 Table 14.6 Raw Assay Statistics for Liard Zone; Capped Data .......................................... 147 Table 14.7 Raw Assay Statistics for Paramount Zone; Capped Data ................................ 147 Table 14.8 Comparison of Capped and Uncapped Cu% and Mo% ................................... 147 Table 14.9 Estimation Parameter Files ............................................................................... 154 Table 14.10 Search and Sample Parameter Files ................................................................ 155 Table 14.11 Variography Parameter Files ............................................................................ 156 Table 14.12 Block Model Configuration ................................................................................ 157 Table 14.13 List of Cell Attributes in Block Model ................................................................. 157 Table 14.14 Assay Statistics for Liard Zone; Composite Data ............................................. 159 Table 14.15 Raw Assay Statistics for Paramount Zone; Composite Data ........................... 159 Table 14.16 Metal Price and Recovery Parameters for CuEq% Calculation ....................... 168 Table 14.17 Summary of the Schaft Creek Resource – Liard and Paramount Zones

Combined .......................................................................................................... 170 Table 14.18 Mineral Resources in the Liard Zone ................................................................ 172 Table 14.19 Mineral Resources in the Paramount Zone ...................................................... 174 Table 14.20 Combined Measured and Indicated Resources in the Liard and Paramount

Zones ................................................................................................................. 176 Table 18.1 Estimated Budget for Phase I Work Program ................................................... 190 Table 18.2 Proposed Drillholes for Phase I Work Program ................................................ 191 Table 18.3 Estimated Budget for Phase II Work Program .................................................. 192 Table 18.4 Proposed Drillholes for Phase II Work Program ............................................... 192

L I S T O F F I G U R E S

Figure 4.1 General Property Location Map .......................................................................... 11 Figure 4.2 Property Location Map of the Schaft Creek Deposit .......................................... 12 Figure 4.3 Mineral Tenures Held by Copper Fox – Schaft Creek Property and

Surrounding Areas .............................................................................................. 14 Figure 6.1 Location Map (Plan View) of Drillholes Completed Prior to Copper Fox

Ownership of Schaft Creek ................................................................................. 30 Figure 7.1 Regional Geology of the Schaft Creek Deposit .................................................. 32 Figure 7.2 Property Geology of the Schaft Creek Deposit ................................................... 34 Figure 7.3 3D Structures of the Schaft Creek Deposit ......................................................... 40 Figure 8.1 Global Distribution of Porphyry Deposits ............................................................ 44 Figure 8.2 Generic Cross-section of a Porphyry Copper-(Molybdenum-Gold) Deposit ...... 46 Figure 9.1 Results of Titan Survey – Schaft Creek Geophysical Model .............................. 53 Figure 9.2 Results of Titan Survey – Schaft Creek 3D Chargeability Model (25 MRADS) . 53 Figure 9.3 Results of the Quantec Titan 24 IP and MT Survey, with Chargeability

Anomalies Outlined ............................................................................................. 54 Figure 9.4 Airborne Geophysical Survey – Total Magnetic Intensity Map ........................... 57 Figure 10.1 Plan View Map of 2005 Drillhole Locations ........................................................ 64 Figure 10.2 Plan View Map of 2006 Drillhole Locations ........................................................ 67 Figure 10.3 Plan View Map of 2007 Drillhole Locations ........................................................ 71 Figure 10.4 Plan View Map of 2008 Drillhole Locations ........................................................ 75 Figure 10.5 Plan View Map of 2010 Drillhole Locations ........................................................ 78

vii 1153440200-REP-R0001-01

Figure 10.6 Plan View Map of 2011 Drillhole Locations ........................................................ 82 Figure 12.1 Photo of Schaft Creek Deposit in Background ................................................. 110 Figure 12.2 Photo of Schaft Creek Deposit in Background ................................................. 111 Figure 12.3 Aerial Photo of Exploration Camp ..................................................................... 111 Figure 12.4 Photo of Collar Casing and Cap for Drillhole 11CF-417 ................................... 112 Figure 12.5 PPE Requirements in Camp ............................................................................. 113 Figure 12.6 Core Racks ........................................................................................................ 114 Figure 12.7 Inside Primary Core Shack ............................................................................... 114 Figure 12.8 Secondary Core Shack ..................................................................................... 115 Figure 12.9 Three Core Cutting Stations Adjacent to Primary Core Shack ......................... 115 Figure 12.10 Labelled Core Boxes From Various Years of Drilling ....................................... 118 Figure 12.11 T81CH223 at 53 m – Bornite + Chalcopyrite, Core of NQ Diameter ................ 119 Figure 12.12 08CF-327 Sample 147197 – Bornite, Pen for Scale ........................................ 119 Figure 12.13 11CF-408 Sample 586481 – Stringers of Chalcopyrite .................................... 120 Figure 12.14 10CF-398 Sample 611051 – Malachite + Sulphides ........................................ 120 Figure 12.15 11CF-409 Sample 1054565 – Disseminated and Blebby Sulphides

(Pyrite > Chalcopyrite) ....................................................................................... 121 Figure 12.16 07CF-313 at 69 m – Disseminated and Blebby Sulphides

(Chalcopyrite + Pyrite) ....................................................................................... 121 Figure 12.17 8CF-327 Sample 147199 – Disseminated Sulphides (Chalcopyrite + Pyrite) .. 122 Figure 14.1 Illustration of Local Geology Map Draped onto Topography – Divide

Between Liard and Paramount Zones .............................................................. 134 Figure 14.2 Plan View Map of 0.25 CuEq% Grade Shells (Paramount and Liard Zones)

and Alteration Wireframes (Hfld1 and Hfld2) .................................................... 136 Figure 14.3 Log Normal Scatter Plot of Cu (%) and Au (g/t) from Composited Drillhole

Data ................................................................................................................... 137 Figure 14.4 Log Normal Scatter Plot of Cu (%) and Mo (%) from Composited Drillhole

Data ................................................................................................................... 138 Figure 14.5 Log Normal Scatter Plot of Cu (%) and Ag (g/t) from Composited Drillhole

Data ................................................................................................................... 138 Figure 14.6 Log Normal Scatter Plot of Ag (g/t) and Au (g/t) from Composited Drillhole

Data ................................................................................................................... 139 Figure 14.7 QQ Plot for Cu (%) – Comparison of Historic and Non-historic Assay

Results ............................................................................................................... 140 Figure 14.8 QQ Plot for Au (g/t) – Comparison of Historic and Non-historic Assay

Results ............................................................................................................... 140 Figure 14.9 QQ Plot for Mo (%) – Comparison of Historic and Non-historic Assay

Results ............................................................................................................... 141 Figure 14.10 QQ Plot for Ag (g/t) – Comparison of Historic and Non-historic Assay

Results ............................................................................................................... 141 Figure 14.11 Raw Data Histogram, Lognormal Distribution Curve and Summary

Statistics for Copper .......................................................................................... 143 Figure 14.12 Raw Data Histogram, Lognormal Distribution Curve and Summary

Statistics for Molybdenum ................................................................................. 144 Figure 14.13 Raw Data Histogram, Lognormal Distribution Curve and Summary

Statistics for Gold .............................................................................................. 145 Figure 14.14 Raw Data Histogram, Lognormal Distribution Curve and Summary

Statistics for Silver ............................................................................................. 146 Figure 14.15 Histogram of Raw Sample Length (m) .............................................................. 148 Figure 14.16 Histogram of Density (SG) ................................................................................ 149 Figure 14.17 Variography Orientation used in both the Liard and Paramount Zones ........... 150

viii 1153440200-REP-R0001-01

Figure 14.18 Experimental Variography for the Liard Zone – Summary Variography ........... 151 Figure 14.19 Experimental Variography for the Paramount Zone – Summary

Variography ....................................................................................................... 152 Figure 14.20 Model Plan View Liard Zone at 850 m Elevation – Cu% Grade ....................... 160 Figure 14.21 Model Plan View Paramount Zone at 850 m Elevation – Cu% Grade ............. 161 Figure 14.22 Model Cross-section View Liard Zone at 639500 mN – Cu% Grade ............... 162 Figure 14.23 Model Cross-section View Paramount Zone at 6361000 mN – Cu% Grade ... 163 Figure 14.24 Swath Plot for Cu% by Easting ......................................................................... 164 Figure 14.25 Swath Plot for Cu% by Northing ....................................................................... 165 Figure 14.26 Swath Plot for Cu% by Elevation ...................................................................... 165 Figure 14.27 Actual Value (Z) Versus Estimated Value (Z*), Slope of Regression is

Expressed as Z/Z* ............................................................................................. 167 Figure 14.28 Oblique View (Looking Northeast) Illustrating Mineral Resource

Classification of Schaft Creek – Entire Deposit ................................................ 177 Figure 14.29 Oblique View (Looking Northeast) Illustrating Mineral Resource

Classification of Schaft Creek – Sliced through 6359750N and 379470E ....... 178 Figure 14.30 Liard Zone Cu% Grade – Tonnage Curve ........................................................ 180 Figure 14.31 Paramount Zone Cu% Grade – Tonnage Curve .............................................. 181 Figure 14.32 Liard Zone Cu% Grade – Metal Curves ............................................................ 183 Figure 14.33 Paramount Zone Cu% Grade – Metal Curves .................................................. 184 Figure 18.1 Section 379650E – Paramount Zone ................................................................ 194 Figure 18.2 Section 6360900 N – Paramount Zone............................................................. 195

G L O S S A R Y

UN ITS OF ME AS U RE above mean sea level ...................................................................................................................... amsl acre .................................................................................................................................................. ac ampere ............................................................................................................................................. A annum (year) .................................................................................................................................... a billion ................................................................................................................................................ B billion tonnes .................................................................................................................................... Bt Billion years ago ............................................................................................................................... Ga British thermal unit ........................................................................................................................... BTU centimetre ........................................................................................................................................ cm cubic centimetre ............................................................................................................................... cm3 cubic feet per minute ........................................................................................................................ cfm cubic feet per second ....................................................................................................................... ft3/s cubic foot.......................................................................................................................................... ft3

cubic inch ......................................................................................................................................... in3 cubic metre ...................................................................................................................................... m3

cubic yard......................................................................................................................................... yd3 Coefficients of Variation ................................................................................................................... CVs day ................................................................................................................................................... d

ix 1153440200-REP-R0001-01

days per week .................................................................................................................................. d/wk days per year (annum) ..................................................................................................................... d/a dead weight tonnes .......................................................................................................................... DWT decibel adjusted ............................................................................................................................... dBa decibel ............................................................................................................................................. dB degree .............................................................................................................................................. ° Degrees Celsius ............................................................................................................................... °C diameter ........................................................................................................................................... ø dollar (American) .............................................................................................................................. US$ dollar (Canadian) ............................................................................................................................. Cdn$ dry metric ton ................................................................................................................................... dmt foot ................................................................................................................................................... ft gallon ............................................................................................................................................... gal gallons per minute (US) ................................................................................................................... gpm gigajoule........................................................................................................................................... GJ gigapascal ........................................................................................................................................ GPa gigawatt............................................................................................................................................ GW gram ................................................................................................................................................. g grams per litre .................................................................................................................................. g/L grams per tonne ............................................................................................................................... g/t greater than ...................................................................................................................................... > hectare (10,000 m2) ......................................................................................................................... ha hertz ................................................................................................................................................. Hz horsepower ...................................................................................................................................... hp hour .................................................................................................................................................. h hours per day ................................................................................................................................... h/d hours per week ................................................................................................................................ h/wk hours per year .................................................................................................................................. h/a inch .................................................................................................................................................. " kilo (thousand) ................................................................................................................................. k kilogram ........................................................................................................................................... kg kilograms per cubic metre ................................................................................................................ kg/m3 kilograms per hour ........................................................................................................................... kg/h kilograms per square metre ............................................................................................................. kg/m2 kilometre .......................................................................................................................................... km kilometres per hour .......................................................................................................................... km/h kilopascal ......................................................................................................................................... kPa kilotonne........................................................................................................................................... kt kilovolt .............................................................................................................................................. kV kilovolt-ampere ................................................................................................................................. kVA kilovolts ............................................................................................................................................ kV kilowatt ............................................................................................................................................. kW kilowatt hour ..................................................................................................................................... kWh kilowatt hours per tonne (metric ton) ................................................................................................ kWh/t kilowatt hours per year ..................................................................................................................... kWh/a less than........................................................................................................................................... <

x 1153440200-REP-R0001-01

litre ................................................................................................................................................... L litres per minute ............................................................................................................................... L/m megabytes per second ..................................................................................................................... Mb/s megapascal ...................................................................................................................................... MPa megavolt .......................................................................................................................................... MV megavolt-ampere ............................................................................................................................. MVA megawatt ......................................................................................................................................... MW metre ................................................................................................................................................ m metres above sea level ................................................................................................................... masl metres Baltic sea level ..................................................................................................................... mbsl metres per minute ............................................................................................................................ m/min metres per second ........................................................................................................................... m/s metric ton (tonne) ............................................................................................................................. t microns ............................................................................................................................................ µm milligram........................................................................................................................................... mg milligrams per litre ............................................................................................................................ mg/L millilitre ............................................................................................................................................. mL millimetre.......................................................................................................................................... mm million ............................................................................................................................................... M million bank cubic metres ................................................................................................................. Mbm3 million bank cubic metres per annum ............................................................................................... Mbm3/a million hectare .................................................................................................................................. Mha million tonnes ................................................................................................................................... Mt minute (plane angle) ........................................................................................................................ ' minute (time) .................................................................................................................................... min month ............................................................................................................................................... mo ounce ............................................................................................................................................... oz pascal .............................................................................................................................................. Pa centipoise ......................................................................................................................................... mPa∙s parts per million ................................................................................................................................ ppm parts per billion ................................................................................................................................. ppb percent ............................................................................................................................................. % pound(s) ........................................................................................................................................... lb pounds per square inch ................................................................................................................... psi revolutions per minute ...................................................................................................................... rpm second (plane angle) ....................................................................................................................... " second (time) ................................................................................................................................... s specific gravity ................................................................................................................................. SG square centimetre ............................................................................................................................ cm2 square foot ....................................................................................................................................... ft2 square inch ...................................................................................................................................... in2 square kilometre .............................................................................................................................. km2 square metre .................................................................................................................................... m2 thousand tonnes .............................................................................................................................. kt Three Dimensional ........................................................................................................................... 3D Three Dimensional Model ................................................................................................................ 3DM

xi 1153440200-REP-R0001-01

tonne (1,000 kg) ............................................................................................................................... t tonnes per day ................................................................................................................................. t/d tonnes per hour ................................................................................................................................ t/h tonnes per year ................................................................................................................................ t/a tonnes seconds per hour metre cubed ............................................................................................. ts/hm3 volt ................................................................................................................................................... V week ................................................................................................................................................ wk weight/weight ................................................................................................................................... w/w wet metric ton ................................................................................................................................... wmt year (annum) .................................................................................................................................... a

AB B REV I AT IO NS A N D ACR ONY MS Accurassay Laboratories ............................................................................................... Accurassay Acme Analytical Laboratories Ltd. ................................................................................. AcmeLabs ALS Chemex Laboratories ............................................................................................. ALS Chemex AMEC Americas Limited ................................................................................................ AMEC Application Information Requirements ........................................................................... AIR BC Environmental Assessment Act ............................................................................... BCEAA BGC Engineering Inc. .................................................................................................... BGC British Columbia ............................................................................................................. BC British Columbia Ministry of Energy and Mines .............................................................. BCMEM Cabo Drilling Corp. ........................................................................................................ Cabo Drilling calcium ........................................................................................................................... Ca calculated vertical gradient ............................................................................................ CVG Cambria Geosciences Inc. ............................................................................................. Cambria Canadian Environmental Assessment Act ..................................................................... CEAA Canadian Institute of Mining, Metallurgy and Petroleum ................................................ CIM chromium ....................................................................................................................... Cr controlled source audio magnetotelluric......................................................................... CSMAT copper equivalent .......................................................................................................... CuEq Copper Fox Metals Inc. .................................................................................................. Copper Fox copper ............................................................................................................................ Cu detection limit ................................................................................................................. DL digital terrain model ....................................................................................................... DTM direct current induced polarization ................................................................................. DCIP electrical imaging ........................................................................................................... EI environmental assessment ............................................................................................ EA Environmental Assessment Office ................................................................................. EAO Environmental Impact Statement ................................................................................... EIS Geotech Drilling Services Ltd. ........................................................................................ Geotech Drilling global positioning system ............................................................................................... GPS gold ................................................................................................................................ Au G&T Metallurgical Services ............................................................................................ G&T Hecla Mining Company .................................................................................................. Hecla high pressure grinding roll .............................................................................................. HPGR

xii 1153440200-REP-R0001-01

Hy-Tech Drilling Ltd. ...................................................................................................... Hy-Tech induced polarization ....................................................................................................... IP inductively coupled plasma-emission spectroscopy ....................................................... ICP-ES inductively coupled plasma-mass spectrometry ............................................................. ICP-MS International Organization for Standardization ............................................................... ISO International Electrotechnical Commission .................................................................... IEC inverse distance squared ............................................................................................... ID2 iron ................................................................................................................................. Fe Knight Piésold Ltd. ......................................................................................................... Knight Piésold kriging efficiency ........................................................................................................... KE Land and Resource Management Plan.......................................................................... LRMP lead ................................................................................................................................ Pb Liard Copper Mines Limited ........................................................................................... Liard Copper Mines Lyncorp Drilling Services ............................................................................................... Lyncorp Drilling magnesium .................................................................................................................... Mg magnetotelluric .............................................................................................................. MT McElhanney Associates Consulting Services Ltd. ......................................................... McElhanney memorandum of understanding ..................................................................................... MOU metal leaching and acid rock drainage........................................................................... ML/ARD Metal Mining Effluent Regulations ................................................................................. MMER molybdenum disulphide ................................................................................................. MoS2 molybdenum .................................................................................................................. Mo National Instrument 43-101 ............................................................................................ NI 43-101 nearest neighbour .......................................................................................................... NN net smelter return ........................................................................................................... NSR niobium .......................................................................................................................... Nb North American Datum .................................................................................................. NAD Northwest Transmission Line ......................................................................................... NTL Notice of Work ............................................................................................................... NoW ordinary kriging .............................................................................................................. OK Paramount Mining Ltd. ................................................................................................... Paramount personal protective equipment ....................................................................................... PPE Precision GeoSurveys Inc. ............................................................................................. Precision GeoSurveys Process Research Associates ....................................................................................... PRA Qualified Person ............................................................................................................ QP quality assurance/quality control .................................................................................... QA/QC Quantile-quantile ............................................................................................................ QQ rock quality designation ................................................................................................. RQD run-of-mine .................................................................................................................... ROM semi-autogenous grinding .............................................................................................. SAG SAG mill comminution.................................................................................................... SMC Schaft Creek Project ...................................................................................................... the Project Schaft Creek Property.................................................................................................... the Property SGS Lakefield Research Limited ................................................................................... Lakefield Research Silver Standard Mines Ltd. ............................................................................................. Silver Standard silver .............................................................................................................................. Ag

xiii 1153440200-REP-R0001-01

Spatsizi Remote Services Corporation .......................................................................... SRSC Standards Council of Canada ........................................................................................ SCC Standards Council of Canada ........................................................................................ SCC Stantec Consulting Ltd. .................................................................................................. Stantec Stewart Bulk Terminals Ltd. ........................................................................................... Stewart Bulk Terminals Tahltan Drilling Services Corporation............................................................................. TDSC Tahltan Nation Development Corporation ...................................................................... TNDC Tahltan Northern Exploration Services Ltd. ................................................................... TNES tailings storage facility .................................................................................................... TSF Teck Resources Limited ................................................................................................ Teck Tetra Tech Wardrop ....................................................................................................... Tetra Tech theoretical slope of regression ....................................................................................... Z/Z* Toronto Stock Exchange Venture .................................................................................. TSXV total field magnetic data ................................................................................................. TF trace ............................................................................................................................... Tr Universal Transverse Mercator ...................................................................................... UTM very-low frequency electromagnetic............................................................................... VLF-EM

Copper Fox Metals Inc. 1 1153440200-REP-R0001-01 Technical Report and Resource Estimate on the Schaft Creek Cu-Au-Mo-Ag Project, BC, Canada

1 . 0 S U M M A R Y

Copper Fox Metals Inc. (Copper Fox) is a Canadian-based resource company listed on the Toronto Stock Exchange Venture (TSXV), trading under the symbol “CUU”, and is focused on the exploration and development of the Schaft Creek copper-molybdenum-gold-silver deposit. Tetra Tech Wardrop (Tetra Tech) was commissioned to complete a technical report and resource estimate update on the Schaft Creek Project (the Project). The Schaft Creek Property (the Property) is located in northwestern British Columbia (BC), situated approximately 1,050 km northwest of Vancouver and 375 km northwest of Smithers.

This report has been prepared in accordance with National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects, Companion Policy 43-101CP to NI 43-101, and Form 43-101F of NI 43-101.

The Qualified Persons (QPs) responsible for this report are Robert Morrison, Ph.D., MAusIMM (CP), P.Geo., a Lead Resource Geologist at Tetra Tech, and Laura Karrei, P.Geo., a Geologist at Tetra Tech. Ms. Karrei conducted a site visit on the Property on February 5 and 6, 2012 where she examined core, along with logging and sample cutting facilities. Due to heavy snow cover and winter conditions, drill sites were viewed from the air in a helicopter.

1 . 1 P R O P E R T Y D E S C R I P T I O N

Copper Fox holds title and a 100% working interest in a total of 142 mineral tenures, comprising 44,265.52 ha of land in northwestern BC. Six contiguous mineral tenures are included in this land package, which constitute the Property and cover 8,334.34 ha. These six mineral tenures are subject to “Schedule A” terms, as discussed in Section 4.2, and the currently defined deposit is situated within the southern boundary of mineral tenure ID 514603 and the northern boundary of mineral tenure ID 514637.

1 . 2 G E O L O G Y A N D M I N E R A L I Z A T I O N

The Schaft Creek deposit is hosted by Stuhini Group (Stikine Terrane) basaltic to andesitic volcanic rocks of the Mess Lake facies. These volcanics are intruded by dacite to granodiorite dikes, whose origin is interpreted to be the nearby Hickman batholith. The Mess Lake facies is a vent-proximal, submarine to sub-aerial volcanic assemblage, and the whole sequence is estimated to be upwards of 800 m thick. There is an abundance of overlapping alteration zones, as well as a complex series of predominantly brittle structures.


The Schaft Creek deposit is considered a calc-alkalic copper-molybdenum porphyry system related to an elongate, high-energy, structurally controlled breccia system. The deposit has historically been divided into three zones; the Liard (Main) Zone, the Paramount Zone, and the West Breccia Zone. For estimation purposes, and due to the geometry of the mineralization, the West Breccia Zone has been included within the Liard Zone. The Liard Zone is related to the intrusion of feldspar quartz-porphyry dikes, while the Paramount Zone is closely related to a north-south trending breccia zone.

Mineralization in the Liard Zone consists of irregular sulphide stockworks (chalcopyrite, bornite, molybdenite, and lesser pyrite) forming a tabular zone overlapping all rock types, though preferentially hosted in coarse fragmental volcanic rocks. In the Paramount Zone, mineralization consists of fine veinlets and disseminated patches of sulphides (chalcopyrite, bornite, and molybdenite) hosted predominantly in the altered fine-grained matrix of the breccia system.

1 . 3 S T A T U S O F E X P L O R A T I O N

The Property was first discovered in the late 1950s, and has an extensive history including the completion of 410 drillholes totalling 98,445.82 m. The Project is at an advanced stage of exploration, with a prefeasibility study completed in 2008 and a feasibility study currently underway.

1 . 4 R E S O U R C E E S T I M A T E

With an effective date of May 23, 2012, the Schaft Creek resource estimate is based on a Datamine™ block model using 15 m3 parent cells and 5 m3 sub-cells. No rotation was applied to the block model. Metals estimated include copper, molybdenum, gold and silver, with grade interpolation using ordinary kriging (OK). Density was interpolated using inverse distance squared (ID2) and values were assigned to cells which failed to be estimated. No values were assigned to metals.

Metal (copper, molybdenum, gold and silver) and density sample outlier populations were identified in the raw assay data using histograms and lognormal cumulative plots. Top-cuts (or “caps”) were applied to the metal outlier populations, while the density outlier population was assigned a null value. Diamond drillhole assay and density data were composited to 4 m lengths for grade estimation. A total of 65,833 m of drill samples (16,501 individual composite samples) were used in the resource estimation.

Tetra Tech created two copper-equivalent (CuEq) grade shell solids using a 0.25% nominal cut-off of the composited and capped sample data. These solids generally matched the solids generated by AMEC Americas Limited (AMEC) in the previous 2011 resource estimate for the Schaft Creek deposit of Kulla et al. (2011). One solid formed the basis for estimation of the Liard Zone to the southeast, and the other formed the basis for estimation of the Paramount Zone to the northwest.


Isatis™ software was used for variography, which was completed for each metal using composited and capped data.

In addition to metals and density, the F-Function and LaGrange Multiplier values were estimated into cells using the copper grade. From these values were calculated the kriging efficiency (KE) and theoretical slope of regression (Z/Z*). Resource categories were assigned to each cells using Z/Z*, such that cells with greater than 0.95 Z/Z* were assigned as a Measured Resource, while cells between 0.25 and 0.95 Z/Z* were assigned as an Indicated Resource and cells less than 0.25 Z/Z* were assigned as an Inferred Resource.

Mineral resources for the Schaft Creek deposit were classified under the 2010 Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves by application of copper-equivalent cut-offs which reflect commodity prices. The prices used include US$2.97/lb for copper, US$16.80/lb for molybdenum, US$1,256/troy ounce for gold and US$20.38/troy ounce for silver. Table 1.1 provides a summary for the entire Schaft Creek Resource (i.e. both the Liard Zone and Paramount Zone combined).


Table 1.1 Summary of the Schaft Creek Resource – Liard and Paramount Zones Combined

Resource Category

Cut-off CuEq%

Volume (m3) Tonnes Density

Tonnes Ounces Grade

CuEq Cu Mo Au Ag CuEq (%)

Cu (%)

Mo (%)

Au (gt)

Ag (gt)

Measured 0.05 54,921,900 147,979,067 2.694 710,181 455,400 25,280 1,153,898 8,457,472 0.480 0.308 0.017 0.243 1.778 0.10 54,794,250 147,635,596 2.694 709,909 455,262 25,275 1,153,196 8,444,100 0.481 0.308 0.017 0.243 1.779 0.15 54,416,250 146,615,287 2.694 708,572 454,548 25,238 1,149,944 8,402,626 0.483 0.310 0.017 0.244 1.783 0.20 53,423,325 143,941,114 2.694 703,786 451,685 25,093 1,140,495 8,295,854 0.489 0.314 0.017 0.246 1.793 0.25 51,190,275 137,927,871 2.694 690,087 443,086 24,687 1,115,692 8,041,256 0.500 0.321 0.018 0.252 1.813 0.30 47,069,175 126,829,423 2.695 659,244 423,451 23,736 1,061,997 7,553,077 0.520 0.334 0.019 0.260 1.852 0.35 41,014,050 110,534,082 2.695 606,161 389,880 22,096 967,410 6,775,078 0.548 0.353 0.020 0.272 1.906 0.40 34,230,000 92,271,368 2.696 537,531 345,890 19,980 848,292 5,871,693 0.583 0.375 0.022 0.286 1.979 0.45 27,547,650 74,277,384 2.696 461,099 296,713 17,472 720,235 4,930,538 0.621 0.399 0.024 0.302 2.065 0.50 21,376,200 57,645,235 2.697 382,035 245,617 14,641 594,891 4,010,802 0.663 0.426 0.025 0.321 2.164

Indicated 0.05 410,498,250 1,105,697,109 2.694 4,345,344 2,784,969 182,101 6,298,821 59,248,807 0.393 0.252 0.016 0.177 1.667 0.10 409,486,800 1,102,969,036 2.694 4,342,975 2,783,763 182,031 6,292,801 59,169,486 0.394 0.252 0.017 0.177 1.669 0.15 401,707,200 1,081,939,528 2.693 4,315,345 2,769,692 181,360 6,218,068 58,335,449 0.399 0.256 0.017 0.179 1.677 0.20 379,482,825 1,021,909,252 2.693 4,208,686 2,709,474 178,138 5,983,941 55,645,466 0.412 0.265 0.017 0.182 1.694 0.25 339,968,625 915,477,325 2.693 3,966,748 2,556,808 169,794 5,584,025 50,932,173 0.433 0.279 0.019 0.190 1.730 0.30 286,106,100 770,430,025 2.693 3,566,919 2,294,959 154,453 5,020,199 44,435,161 0.463 0.298 0.020 0.203 1.794 0.35 227,489,925 612,662,375 2.693 3,053,899 1,957,733 133,946 4,317,656 37,027,689 0.498 0.320 0.022 0.219 1.880 0.40 172,406,625 464,552,311 2.695 2,499,086 1,596,667 110,819 3,550,138 29,522,275 0.538 0.344 0.024 0.238 1.977 0.45 127,310,100 343,308,026 2.697 1,984,814 1,264,944 88,415 2,837,462 22,967,207 0.578 0.368 0.026 0.257 2.081 0.50 89,803,875 242,367,103 2.699 1,506,209 958,560 67,076 2,166,438 17,166,035 0.621 0.395 0.028 0.278 2.203

table continues…


Resource Category

Cut-off CuEq%


Tonnes Ounces Grade


Cu (%)

Mo (%)

Au (gt)

Ag (gt)

Inferred 0.05 232,068,900 625,134,106 2.694 2,154,900 1,319,749 94,296 3,444,780 32,423,450 0.345 0.211 0.015 0.171 1.613 0.10 228,899,775 616,607,156 2.694 2,149,258 1,314,696 94,205 3,443,000 32,400,049 0.349 0.213 0.015 0.174 1.634 0.15 221,727,900 597,191,283 2.693 2,123,136 1,303,101 93,581 3,359,565 31,601,369 0.356 0.218 0.016 0.175 1.646 0.20 199,885,500 538,065,824 2.692 2,018,913 1,247,192 91,028 3,095,694 28,800,765 0.375 0.232 0.017 0.179 1.665 0.25 167,424,000 450,670,341 2.692 1,822,334 1,128,998 84,380 2,725,750 24,815,546 0.404 0.251 0.019 0.188 1.713 0.30 132,156,675 355,826,449 2.692 1,561,588 966,790 73,365 2,321,034 20,533,048 0.439 0.272 0.021 0.203 1.795 0.35 98,202,825 264,462,368 2.693 1,264,919 780,660 59,756 1,894,709 16,148,473 0.478 0.295 0.023 0.223 1.899 0.40 71,670,000 193,060,107 2.694 998,088 611,650 46,871 1,535,576 12,597,631 0.517 0.317 0.024 0.247 2.030 0.45 51,542,175 138,916,161 2.695 768,777 468,363 35,316 1,224,170 9,603,460 0.553 0.337 0.025 0.274 2.150 0.50 35,177,925 94,914,213 2.698 560,445 340,682 25,029 916,792 6,945,542 0.590 0.359 0.026 0.300 2.276


1 . 5 C O N C L U S I O N S A N D R E C O M M E N D A T I O N S

In Tetra Tech’s opinion, the updated mineral resource estimate, that is the subject of this report, is a fair and reasonable representation of the Schaft Creek deposit. The model is sufficiently advanced and sophisticated to be used to support a feasibility study.

Furthermore, it is Tetra Tech’s opinion that additional exploration expenditures are warranted, and two separate exploration programs are proposed. Phase I is designed to identify and delineate new mineralized zones and chargeability anomalies identified from the Quantec Titan and High Resolution Magnetic surveys, and to infill drill part of the northern portion of the Paramount Zone to upgrade the resource category from inferred to indicated. Pending positive results of Phase I, Phase II is designed to further explore the GK, ES and Mike chargeability anomalies, and the area of mineralization west of the West Breccia Zone, situated outside of the current mineral resource estimate.


2 . 0 I N T R O D U C T I O N

Copper Fox is a Canadian-based resource company listed on the TSXV as CUU, and is focused on the exploration and development of the Schaft Creek copper-molybdenum-gold-silver deposit located in northwest BC, Canada.

Copper Fox’s corporate office is located at 650, 340 - 12th Avenue SW, Calgary, AB, T2R 1L5 and their operations office is located at Suite 908, 510 Burrard Street, Vancouver, BC, V6C 3A8.

This technical report and resource estimate refers to the Property, which is situated approximately 1,050 km northwest of Vancouver and 375 km northwest of Smithers.

2 . 1 T E R M S O F R E F E R E N C E A N D P U R P O S E O F R E P O R T

Tetra Tech was retained by Copper Fox to produce a resource estimate on the Project in accordance with CIM Best Practices, and to disclose it in a technical report that has been prepared in accordance with NI 43-101 and Form 43-101F1.

The objectives of this study are to:

• produce a current resource estimate and to compile a NI 43-101 technical report on the Project, including an updated geological model, summary of land tenures, exploration history, geophysics, and drilling. This resource estimate includes drilling results from the 2011 program, and supersedes that of Kulla et al. (2011).

• provide recommendations and a budget for additional work on the Project.

The QPs responsible for this report are Robert Morrison, Ph.D., MAusIMM (CP), P.Geo., a Lead Resource Geologist at Tetra Tech, and Laura Karrei, M.Sc., P.Geo., a Geologist at Tetra Tech. Ms. Karrei conducted a site visit to the Property on February 5 and 6, 2012. During the site visit, Ms. Karrei visited the Project area, where she examined core, along with logging and sample cutting facilities. Due to heavy snow cover and winter conditions, drill sites were viewed from the air in a helicopter.

The accompanying resource estimate is also being used in the feasibility study, which is currently underway and being led by Tetra Tech. The study is expected to be completed later in 2012. It will include this updated geological model and resource estimate, along with a reserve estimate, revised capital cost and operating cost estimates, and other technical, socio-economic and financial reports related to the Property.


2 .1.1 UNIT S OF MEASUR EMENT

All units of measurement used in this technical report and resource estimate are in metric, and currency is expressed in US dollars, unless otherwise stated.

On the effective date of the report, the exchange rate was US$1.00 equal to CDN$1.03.

2 . 2 E F F E C T I V E D A T E

The effective date of the mineral resource estimate and this report is May 23, 2012.

2 . 3 I N F O R M A T I O N A N D D A T A S O U R C E S

All the data files reviewed for this study have been provided by either Copper Fox, or Cambria Geosciences Inc. (Cambria), on behalf of Copper Fox. Cambria was retained by Copper Fox to manage the 2011 diamond drilling exploration program, together with a program re-sampling and re-logging historical core from the Project.

Information was given to Tetra Tech in the form of .pdf reports, .xls files, .jpeg files, .dxf files, from acQuire Technology Solutions Pty Ltd. (acQuire), a geological database in the form of an export into Access, email correspondences, and personal communication. The Gemcom GEMS™ database used by AMEC for the 2011 resource estimate was also provided. Exploration work completed by Copper Fox includes years of historical data compilation, geophysical surveying, drilling and sampling.

The main sources of information in preparing this report are:

• Bender M., and McCandlish, K., 2008. Copper Fox Metals, Inc. Canadian National Instrument 43-101 Amended Technical Report: Preliminary Feasibility Study on the Development of the Schaft Creek Project Located in Northwest British Columbia, Canada: unpublished technical report prepared by Samuel Engineering Inc. for Copper Fox, effective date September 15, 2008, amended and restated June 17, 2010.

• Caron, M.E., Carter, G., and McGuigan, P.J. 2012. Progress Report – 2011 Exploration Program for the Schaft Creek Property, Schaft Creek, Northwestern British Columbia. Prepared by Cambria Geosciences Inc. April 2012, 77 pages.

• Kulla, G., Thomas, D., and Lipiec, T. 2011. Copper Fox Metals Inc. Schaft Creek Polymetallic Project, British Columbia, BC, NI 43-101 Technical report on Updated Mineral Resource Estimate. Prepared by AMEC, effective date July 26, 2011, 169 pages.

A complete list of references is provided in Section 19.0 of this report.


3 . 0 R E L I A N C E O N O T H E R E X P E R T S

In preparation of this report, Tetra Tech has relied upon others for information pertaining to mineral tenure, property ownership, surface rights, environment, royalties, and social issues. The majority of the information has been sourced from Copper Fox internal reports, company press releases, Bender et al. (2007), Caron et al. (2012), and Kulla et al. (2011). Neither Tetra Tech nor the authors are qualified to provide extensive comment on legal issues, including mineral tenure status associated with the Project and ownership.

Copper Fox has provided a description of the Property, which is disclosed in Section 4.0, and ownership is sourced from the following:

• Ministry of Energy and Mines of British Columbia website (http://www.empr.gov.bc.ca/MINING/GEOSCIENCE/ARIS/BUILDMAPS/Pages/faq2.aspx), May 2012

• Stewart, E. 2012. Property description WEI Report, prepared by Elmer B. Stewart, President and Chief Executive Officer, Copper Fox Metals Inc., provided to Tetra Tech on May 17, 2012.

Tetra Tech has not conducted an examination of mineral tenures for the Project.


4 . 0 P R O P E R T Y D E S C R I P T I O N A N D L O C A T I O N

Copper Fox holds title and a 100% working interest in a total of 142 mineral tenures, comprising 44,265.52 ha of land in northwestern BC. Six contiguous mineral tenures are included in this land package, which constitute the Property and cover 8,334.34 ha.

4 . 1 L O C A T I O N

The Property is located:

• within National Topographic System (NTS) 1:50,000 scale topographic map sheets 104G/6 and 7

• at Universal Transverse Mercator (UTM) coordinates 379700 E, 6359500 N, North American Datum (NAD)83, Zone 9 datum

• at latitude 57° 22’ north, longitude 131° 00’ west

• 1,050 km northwest of Vancouver

• 375 km northwest of Smithers

• 130 km southwest of Dease Lake

• 80 km southwest of the village of Iskut

• approximately 60 km south of the village of Telegraph Creek

• 9 km west of the southeast edge of Mount Edziza Provincial Park

• approximately 45 km west of Highway 37

• within the Liard Mining Division and the Cassiar Iskut-Stikine Land and Resource Management Plan (LRMP) area

• within the traditional territory of the Tahltan Nation

• on the eastern edge of the Coast Mountain Range in northwestern BC.

The Property is situated as illustrated in Figure 4.1 and Figure 4.2.


Figure 4.1 General Property Location Map


Figure 4.2 Property Location Map of the Schaft Creek Deposit


4 . 2 P R O P E R T Y D E S C R I P T I O N – M I N E R A L T E N U R E S A N D A G R E E M E N T S

Copper Fox holds title and a 100% working interest in a total of 142 mineral tenures, comprising 44,265.52 ha of land (Appendix A) in northwestern BC (Figure 4.3). Included in this land package are the six contiguous “Schedule A” mineral tenures which constitute the Property and covers 8,334.34 ha (Table 4.1). As illustrated in Figure 4.3, the Schaft Creek copper-gold-molybdenum-silver deposit is located within the southern boundary of mineral tenure ID 514603 and the northern boundary of mineral tenure ID 514637.

Table 4.1 Mineral Tenures Defining the Property

Tenure Number Issue Date Good To Date Status

Area (ha)

514595 2005/Jun/16 2018/Oct/30 GOOD 1,653.04 514596 2005/Jun/16 2018/Oct/30 GOOD 1,550.96 514598 2005/Jun/16 2018/Oct/30 GOOD 1,412.62 514603 2005/Jun/16 2018/Oct/30 GOOD 1,291.06 514637 2005/Jun/17 2018/Oct/30 GOOD 1,256.71 514721 2005/Jun/17 2018/Oct/30 GOOD 1,169.95


Figure 4.3 Mineral Tenures Held by Copper Fox – Schaft Creek Property and Surrounding Areas


The mineral tenures that constitute the Property were originally conveyed to Copper Fox, formerly 955528 Alberta Ltd., pursuant to the 2002 Option Agreement between Copper Fox and Teck Resources Limited (Teck). The 2002 Option Agreement contains an Area of Interest clause that extends for a maximum distance of 2 km from the outside boundary of the “Schedule A” mineral tenures. Copper Fox has earned a 100% working interest in the Project subject to a 30% net proceeds interest held by Liard Copper Mines Limited (Liard Copper Mines), a private company 78% owned by Teck, and a 3.5% net profits interest held by Royal Gold Inc. The 78% equity interest in Liard Copper Mines represents 23.4% of Liard Copper Mines’ 30% net proceeds interest in the Project referred to as “Teck’s indirect interest”. Copper Fox can earn Teck’s “indirect interest” by completing and delivering to Teck a Positive Bankable Feasibility Study, under the terms of the 2002 Option Agreement. Teck may at any time elect to exercise one of its earn-back options pursuant to the terms and conditions of the 2002 Option Agreement. On receipt of a Positive Bankable Feasibility Study, as defined in the 2002 Option Agreement, Teck has 120 days in which to elect to either: i) exercise one of its earn-back options, or ii) retain a 1% net smelter return (NSR) royalty, or iii) receive shares of Copper Fox to a value of $1,000,000 (Stewart 2012).

If Teck exercises the earn-back option, then it can elect to acquire either 20%, 40% or 75% of Copper Fox’s interest in the Project by solely-funding subsequent expenditures that are equal to either 100%, 300% or 400% of Copper Fox’s prior expenditures. As of the end of January 2012, Copper Fox expenditures totalled approximately $75.9 million. Should Teck elect to earn-back a 75% working interest, Teck will be responsible for arranging Copper Fox’s share of project financing and recover such project financing funds from Copper Fox’s share of metal sales until payout is reached (Stewart 2012).

The remainder of the mineral tenures totaling 35,931.18 ha in the area are held 100% by Copper Fox and have been obtained by Copper Fox through mineral tenure acquisitions and mineral tenure purchase agreements with several vendors. Some of these mineral tenures are subject to inclusion within the Project under the terms of the Area of Interest provisions of the Option Agreement.

These mineral tenures are subject to various NSR royalties retained by the vendors that range from 0.5% NSR to 2% NSR. The NSRs held by the vendors are subject to a “Partial NSR Buyout Option” which allows Copper Fox at any time to purchase half of the NSR from each vendor for cash payments that range from $0.25 million to $1.5 million (Stewart 2012). The reader should refer to www.copperfoxmetals.com for details pertaining to each agreement.

The aforementioned mineral claims cover all of the known mineralized area within the Project described within this report, and contain sufficient land for exploration and development purposes.

http://www.copperfoxmetals.com/


4 . 3 C O M M U N I T Y R E L A T I O N S A N D T H E C A S S I A R I S K U T - S T I K I N E L A N D A N D R E S O U R C E M A N A G E M E N T P L A N

The Schaft Creek mineral claims are located in traditional lands of the Tahltan Nation. Copper Fox has initiated discussions with Tahltan Nation Development Corporation (TNDC), which represents the economic arm of the Tahltan Nation, to set out the joint understanding and intention of both parties to co-operate in performing work on the Project. On May 4, 2007, Copper Fox and the Tahltan Nation announced that they had completed a memorandum of understanding (MOU). The agreement defines the scope of work, program commitments, cooperation, and communication that Copper Fox will follow at Schaft Creek and recognizes that the TNDC are a preferred contractor (Kulla et al. 2011). Tahltan Northern Exploration Services Ltd. (TNES) of Dease Lake and Smithers, and Spatsizi Remote Services Corporation (SRSC) of Dease Lake, managed and supported the Schaft Creek camp in 2011 on behalf of Copper Fox.

Schaft Creek is situated within the Liard Mining Division and the Cassiar Iskut-Stikine LRMP area, which encompasses 5.2 Mha in northwestern BC (Caron et al. 2012). The LRMP was finalized in May 2000, and supports further exploration and development of the mineral resources in the area by providing information to be considered during the permitting and impact assessment processes. The LRMP is primarily in territory claimed by the Tahltan Nation. The Tahltan Joint Councils, representing the Tahltan Band from Telegraph Creek and the Iskut Band, were full table members throughout the process and endorse the LRMP. Neighbouring First Nations include the Nisga'a, Kaska, and Tlingit Nations. The LRMP identifies 15 geographic resource management zones, covering 31% of the plan area. The Project is part of the Telegraph Creek Community Watershed and therefore falls under Area-Specific Management requirements stipulated in the LRMP. This zone includes the domestic water supply for the community of Telegraph Creek and is formally designated as a Community Watershed. The objective of the management approach is “to maintain the quality and quantity of community water supply and to maintain natural stream flow regimes within the natural range of variability”. The LRMP states that mineral exploration, including road construction, maintenance and deactivation, is to be conducted according to the guidelines for community watersheds outlined in the Mineral Exploration Code (Kulla et al. 2011).

Copper Fox has posted a reclamation bond with the British Columbia Ministry of Energy and Mines (BCMEM) to reclaim the Property. This includes removing all surface facilities and reclaiming areas of disturbance. The bond has been deemed sufficient by the BCMEM to reclaim the Property in the event that Copper Fox abandons the Property (Bender et al. 2007).

4 . 4 S O C I O - E C O N O M I C A N D E N V I R O N M E N T A L S T U D I E S A N D I S S U E S

Schaft Creek environmental and socio-economic baseline studies began in October 2005 and are ongoing. Baseline studies completed in 2006 included wildlife (moose,


goats and bird studies), water quality, aquatic biology, fisheries, hydrology, meteorology, archaeology and metal leaching and acid rock drainage (ML/ARD). The results of the 2006 studies were reviewed by Federal and Provincial regulators and the Tahltan Nation. The scope of work for the 2007 environmental and socio-economic baseline studies was increased significantly and was aimed at fulfilling requirements of both a Federal and Provincial environmental assessment process and the specific studies requested by the Tahltan Nation. Studies in 2007 consisted of aquatic and fisheries surveys, archaeological studies, meteorological baseline studies, a bat and Western toad survey, hydrological and road assessment studies, wetlands, groundwater and hydrology baseline studies, noise, soils and vegetation baseline studies, ML/ARD studies and a Tahltan foods baseline assessment. The work and scope of the 2007 and 2008 environmental and socio-economic baseline studies were presented and approved by government authorities and the Tahltan Nation (Kulla et al. 2011).

During 2008, studies included additional fisheries, bird, aquatic, vegetation, and ungulate surveys, ecosystem and vegetation mapping surveys, a navigable waters assessment, ML/ARD assessments, and an access route geohazard survey. Update studies were performed in 2009 to assess the site meteorology and air quality, update the country foods assessment and complete the baseline hydrological survey. During 2010, studies performed included moose and wildlife habitat suitability surveys, ML/ARD studies, land use and soils baseline studies, a socio-economic baseline study, archaeological and hydrometeorological studies, and a channel assessment and migration hazard study on Upper Mess Creek (Kulla et al. 2011). Environmental baseline studies show that the Schaft Creek deposit contains a very low amount (approximately 5%) of potential acid generating rock and that the streams in the immediate vicinity of the proposed open pit mine, waste rock storage areas and tailings areas are non-fish-bearing (press release February 15, 2011).

In addition to these baseline studies, Copper Fox has commissioned studies on environmental and social work plans, alternatives assessments, geohazard options for tailings storage facility (TSF) locations, water management studies for the TSF and assessment of likely access routes (Kulla et al. 2011).

The Project has a long exploration history, with a 60-person camp and an existing airstrip on site. Additional disturbances are related to access roads and drill sites. Copper Fox has posted a reclamation bond with the BCMEM to reclaim the Property. This includes removing all existing surface facilities and reclaiming areas of disturbance. The bond has been deemed sufficient by the BCMEM to reclaim the Property in the event that Copper Fox abandons the Project. Closure costs estimated for a mining operation in the 2008 prefeasibility study were about $87 million. This figure will be reviewed during feasibility-level studies (Kulla et al. 2011).

The Project will require a BC environmental assessment certificate as well as provincial permits, authorizations and licenses to construct and operate the Schaft Creek mine. The Project may also require a federal decision on the likelihood of


environmental impacts if the Canadian Environmental Assessment Act (CEAA) applies to the Project. The Project constitutes a reviewable project pursuant to Part 3 of the Reviewable Projects Regulations (British Columbia Reg. 370/02) of the BC Environmental Assessment Act (BCEAA). The Project was launched in the BC environmental assessment (EA) process on August 14, 2006, with the Issuing of Order under Section 10(1)(c) of the BCEAA. The Canadian EA process is governed by the CEAA. At this time, it is not known if the CEAA will apply to the Project. The CEAA applies when a federal department or agency is required to make a decision on a proposed project. Federal regulatory agencies require specific project details to determine if and how the CEAA will apply. Upon receipt of the BC environmental assessment certificate, permits, authorizations and licenses will be sought to construct and operate the Schaft Creek mine (Bender et al. 2007). Copper Fox is working towards completing an EA application (press release April 20, 2012).

Copper Fox has worked with the Tahltan Heritage Resources Environmental Assessment Team and provincial and federal regulators to finalize the Application Information Requirements (AIR) (formerly the Terms of Reference) for the EA application for the Project. The collection of environmental baseline data including detailed environmental and socio-economic studies related to development of the Schaft Creek deposit has occurred. The AIR is the last major milestone in the pre-application stage of the EA process for the Project. The approval for the terms and conditions of the AIR was received on February 7, 2011. Copper Fox will submit an application for the BC environmental assessment certificate for review at the end of 2012. The EA application will also serve as the Environmental Impact Statement (EIS) as required under the CEAA. Stantec Consulting Ltd. (Stantec) has been contracted to assemble the environmental data collected over the past five years and to prepare the EA application for the Project. Copper Fox’s goal is to minimize the impact on the environment and develop the Schaft Creek deposit in an environmentally responsible manner (press release February 15, 2011).

4 . 5 P E R M I T S

4.5.1 CURR ENT PER MIT S

Copper Fox is currently working under an amended Notice of Work (NoW) and reclamation program from BCMEM under the Mines Act (BC) (Permit #MX-1-647, Approval #11-0100455-0705; Mine #01400455, dated March 31, 2011 and valid for a four-year term). Use of the Schaft Creek airstrip is also covered under the NoW and reclamation program. Copper Fox has filed an amended NoW for 2011 (Mine #0100455) which has been subsequently approved. The planned start date was filed as May 25, 2011 and the NoW had a planned end date of December 30, 2014 (Kulla et al. 2011). The types of activities that were advised to be undertaken in the application included:

• grids, camps and helicopter pads

• surface drilling


• access construction, modification or reclamation work.

The BCMEM will send the permit amendment application to various government agencies and First Nations to review. These parties have 30 days to review the amendment application. Copper Fox has received preliminary indication that the Government of BC will grant the permit (Kulla et al. 2011).

Copper Fox has previously obtained an “Occupation Licence to Cut” from the BC Ministry of Forests, Lands and Natural Resource Operations (Permit # L47555). This permit allowed Copper Fox to cut trees for the purpose of exploration activities. This permit was valid until June 14, 2009. During 2010, Copper Fox brushed out old trails and did not require a renewal of the permit (Kulla et al. 2011). In 2011, Copper Fox was issued a free use permit (Permit #MX-1-647:2011) for tree-cutting for the approved work program beginning July 5, 2011 and ending on March 31, 2015. Copper Fox has also been issued an equivalency certificate (#SA103322 Ren 1.) by Transport Canada Safety and Security to handle or transport dangerous goods, by cargo aircraft. The certificate was issued on April 20, 2012 and is valid until April 30, 2014.

4.5.2 PERMITS T O SU PPORT PROJECT DEVELOPMENT

The information in this subsection is taken directly from Kulla et al. (2011), which derived the information from Bender et al. (2008), and Copper Fox personnel.

The Schaft Creek Mine Project constitutes a reviewable project pursuant to Part 3 of the Reviewable Projects Regulation (B.C. Reg. 370/02) as the Project is a planned new mining facility that during operations is proposed to have a production capacity of greater than 75,000 t/a.

As required by British Columbia (BC) Environmental Assessment Act and specified in the section 10 order issued by the BC Environmental Assessment Office (EAO) on August 14, 2006, Copper Fox must submit an application for an environmental assessment certificate (Application) and receive and Environmental Assessment Certificate (EA Certificate) before proceeding with activities related to construction and operation of the Project. The BC EAO is responsible for administering the EA review and presenting its findings to the Ministers of Environment and Mines for a decision on issuance of an EA Certificate.

The Project is currently in the first of the Province’s two staged EA process. The pre-application stage focuses on identification of the issues and concerns to be addressed in the EA Application. The pre-application stage is considered completed on acceptance of the EA Application for review by the BC EAO, initiating the Application Review stage of the EA process.

The Application must assess potential adverse environmental, social, economic, heritage and health effects, and practical means to prevent or reduce to acceptable level any potential adverse effects. The Application must also assess


potential adverse effects on First Nation Aboriginal Interests and to the extent appropriate propose means to avoid, mitigate, or otherwise accommodate such potential adverse effects.

The Project is also subject to federal review under the Canadian Environmental Assessment Act, SC 1992, c.37 (CEAA) due to the requirement for federal statutory authorizations. Natural Resources Canada (NRCan) is a confirmed Responsible Authority (RA) under section 11(1) of the CEAA, due to the requirement for issuance of a licence under section 7(1)(a) of the Explosives Act. Fisheries and Oceans Canada (DFO), is also a confirmed RA due to the requirement for authorisation under subsection 35(2) of the Fisheries Act. Environment Canada has also confirmed RA status due to the likelihood that it will need to issue a licence under subsection 10(1) of the International River Improvements Regulations. Transport Canada (TC) is a potential RA as it may need to issue an approval under section 5 of the Navigable Waters Protection Act. Since the Project is listed in the schedule of the Comprehensive Study List Regulations (i.e. a proposed metal mine with a capacity of greater than 3,000 tonnes per day), it will be subject to a comprehensive study.

Pursuant to subsection 11.01 (1) of the CEAA, the Canadian Environmental Assessment Agency (CEA Agency) will exercise the powers and perform the duties and functions of the RAs until the comprehensive study report is provided to the Minister of the Environment.

The Canada/British Columbia Agreement on Environmental Assessment Cooperation (2004) provides for cooperative EAs to minimize duplication whenever possible. A cooperative assessment will be undertaken, pursuant to this agreement, and will be led by the EAO and CEA Agency. To ensure the EA of the Project is harmonized to the greatest extent possible, the EAO and CEA Agency will develop a work plan covering aspects of the EA such as timelines, Aboriginal and public consultation, and agency/departmental roles and responsibilities.

Copper Fox will submit a draft Application to the EAO and CEA Agency for screening to ensure compliance with the AIR. Following any changes required by the EAO based on feedback from a technical Working Group made of Government regulators and First Nations, Copper Fox will submit the final Application to the EAO and EAO will initiate the Application review phase, to be completed within 180 days. The Application will be made available to First Nations listed on the EAO’s section 11 order, Government agencies, local governments, and the public. In the early stages of the Application review, the EAO will initiate a 45 day public comment period on the Application, as set out in the section 11 order. Following the public comment period, Copper Fox will track and address the issues raised during the Application review. At the end of the review the EAO will submit an assessment report, and recommendations to the Provincial Minister of Environment and Minister of Mines on the issuance of the EA Certificate.


The Federal government, on completing its review under the CEAA, will submit its conclusions and recommendations, in the form of a comprehensive study report, to the Federal Minister of the Environment for a decision under section 23 of the CEAA, whether to refer the Project back to the RAs for a course of action decision under section 37 of the CEAA.

Providing that Provincial and Federal EA approvals are obtained, Copper Fox will require a number of permits and authorizations from both Provincial and Federal departments before construction and operation can be initiated. Copper Fox has indicated that it intends on submitting applications for Provincial permits and authorizations related to the construction of the access road, concurrently during the Application review. While the Province’s Concurrent Approval Regulation (B.C. Reg. 371/2002) allows for submission of eligible approvals required to construct and operate the Project during the province’s review of the Application for an Environmental Assessment Certificate, a decision on those approvals cannot be made until and unless the certificate has been issued. There is no federal concurrent approval mechanism, and RAs will move into their permitting/authorization decision processes if and after making a course of action decision under section 37 of the CEAA.

Copper Fox has completed numerous environmental baseline studies in the fields of water quality, hydrology, hydrogeology, climate, fish and aquatics, wildlife, vegetation, soils, economics, social, health and heritage (refer to Section 4.7). Copper Fox will use this information together with the final Project Description from the planned Feasibility Study to compete a draft EA Application for submission to the BC EAO and CEA Agency. Copper Fox intends to submit the draft EA Application in the fourth quarter of 2011.

4.5.3 OTHER PER MIT S

Copper Fox is anticipating the following federal triggers (Kulla et al. 2011):

• Transport Canada (Navigable Waters Act)

• Department of Fisheries and Oceans (Fisheries Act; Metal Mining Effluent Regulations)

• Natural Resources Canada (Explosives Act)

• Permit Approving Work System and Reclamation Program (Mines Act)

• Water License (Water Act)

• Construction Permit (Drinking Water Protection Act)

• Operation Permit (Drinking Water Protection Act)

• Occupant License to Cut (Forest Act)

• Special Use Permit (Forest Act)

• License of Occupation (Land Act)


• Investigative Permit (Land Act)

• Surface Lease (Land Act)

• Right of Way (Land Act)

• Highway Access Permit (Transportation Act)

• Permit to Construct a Water Works (Drinking Water Protection Act)

• Waste Management Permit (Environmental Management Act)

• Camp Operations Permit (Environmental Management Act).

The following is a list of key federal approvals and licenses likely required to develop the Schaft Creek Project:

• Metal Mining Effluent Regulations (MMER) (Fisheries Act/Environment Canada)

• Fish Habitat Compensation Agreement (Fisheries Act)

• Section 35(2) Authorization for harmful alteration, disruption or destruction of fish habitat (Fisheries Act)

• Navigable Water: Stream Crossings Authorization (Navigable Waters Protection Act)

• Tailings Dam Permit (Letter of Application) (Navigable Waters Works Regulations)

• Explosives Factory License (Explosives Act)

• Explosives Magazine License (Explosives Act)

• Ammonium Nitrate Storage Facilities (Canada Transportation Act)

• Radio Licenses (Radio Communication Act).

4 . 6 T E T R A T E C H C O M M E N T S

The mineral tenures are on Crown land and do not confirm exclusive surface rights to a mineral claims holder. Tetra Tech is not aware of any other environmental or social issues regarding the Property. All exploration activities conducted on the Property are in compliance with relevant environmental permitting requirements. To Tetra Tech’s knowledge, Copper Fox has obtained permits required to undertake exploration activities which are sufficient to ensure that activities are conducted within the regulatory framework. Additional permits will be required for Project development; preliminary discussions have been held with the relevant statutory authorities. A number of permits will be required to support Project development and operation.


5 . 0 A C C E S S I B I L I T Y , C L I M A T E , L O C A L R E S O U R C E S , I N F R A S T R U C T U R E A N D P H Y S I O G R A P H Y

5 . 1 A C C E S S I B I L I T Y

The Property is remotely located with no developed roads leading into the area. It is best accessed via helicopter and fixed-wing aircraft, utilizing the gravel airstrips at the camp. Helicopter service is normally available at Dease Lake and at Bob Quinn. Alternatively, fixed wing aircraft can be chartered from Smithers, BC and flown directly to the Schaft Creek camp. Mobility within the Project area is achieved via rough-service bulldozer trails.

5 . 2 C L I M A T E A N D P H Y S I O G R A P H Y

The Property is situated within the mountainous terrain just east of the junction between Hickman Creek and Schaft Creek. Rugged coastal mountains and ice fields are present to the west of the Property, while the Edziza Plateau lies to the east, with its gentler terrain. Snowfields and small, retreating hanging-valley glaciers are typically present year-round on the mountaintops. Schaft Creek flows northerly into Mess Creek, which in turn flows northward to the Stikine River. Elevation in the area varies between approximately 900 masl to over 1,990 masl (Caron et al. 2012). The deposit is situated on the lower west-facing slopes south of Mount LaCasse, partially in and to the west of a low saddle between the Schaft and Mess Creek Valleys, immediately west of Snipe Lake.

The Property is located in an alpine environment, with a climate characterized by mild summers and cold winters. The minimum and maximum mean annual temperatures in the region are -6.9°C and 4.6°C respectively. July and January average temperatures are 12.6°C and -18.1°C respectively. The mean annual rainfall for the region is 398.3 mm (www.worldclimate.com – Dease Lake). Approximately 60% of precipitation occurs as snow, which can reach a depth greater than 2 m and persist into June (Bender et al. 2007). The dominant wind direction in the area is from the south and southeast, and wind speed is highly dependent upon location. Monthly average wind speeds were observed to vary between 1.0 and 3.0 m/s in more sheltered areas and up to 7.0 m/s in more exposed areas (Kulla at el. 2011). Due to the high volume of snowfall in the area, exploration activities typically take place between May and November. It is expected that mining activities will be conducted throughout all seasons.

The Schaft Creek area is located within the Boundary Range of the Coast Mountains. The Schaft Creek valley, at an elevation of 866 m, is the up-stream extension of the

http://www.worldclimate.com/


Telegraph Creek Lowlands. The immediate Project area is approximately 3 km by 3 km in size, rising rapidly eastward from the valley bottom to near-tree line elevation at the saddle in the vicinity of Snipe Lake, and towards Mess Creek to the east. The surrounding mountain to the south and west of the deposit is steep and rugged. The Project area rises to above 2,000 m from the valley floor to snow-capped mountain peaks and ice fields within a few kilometres of the camp. To the east the elevation drops from the Snipe Lake saddle to Mess Creek. To the north of the deposit is the west-facing slope of Mount LaCasse, at 2,200 masl. The broad, 1 km wide, north-south-trending valley of Schaft Creek to the west of the camp site is a braided stream plain made up of thick, glacio-fluvial and fluvial deposits. The valleys and associated tributaries are typical alpine and sub-alpine glaciated valleys that exhibit broad U-shaped cross sections and steep valley slopes. The elevation of the tree line is variable but alpine vegetation predominates above the 1,100 masl level. Below that, forests are made up of balsam fir, sitka spruce, alder, willow, devils club and cedar. Higher up the valleys, glacial moraines are bare to sparsely overgrown by sub-alpine vegetation (Kulla et al. 2011).

5 . 3 L O C A L R E S O U R C E S A N D I N F R A S T R U C T U R E

5.3.1 EXISTIN G INFR ASTR UCTU RE

The main supply point for the Project area is Smithers, BC, situated approximately 375 km southeast of the Property. The Property is situated within the traditional territory of the Tahltan Nation and the nearest villages are Telegraph Creek, Dease Lake, and Iskut. These communities provide labourers and machine operators, diamond drill crews, and camp management services. Dease Lake is the centre of government for the Tahltan Nation and is a local supply point for basic goods and medical services (Caron et al. 2012). The Tahltan native population has a long history of involvement in the mineral exploration industry and in recent years has developed a thriving business supplying transportation, construction and catering services to mining operations at competitive rates (Kulla et al. 2011). TNES of Dease Lake and Smithers, and SRSC of Dease Lake, managed and supported the Schaft Creek camp in 2011 on behalf of Copper Fox.

Copper Fox maintains a permanent camp in the Schaft Creek valley that can accommodate approximately 70 people. Original construction of the camp facilities commenced in the mid-1960s. Between 1968 and 1981, when Hecla Mining Company (Hecla) and subsequently Teck aggressively explored the Property, most of the site infrastructure was established. Copper Fox re-built the camp to include a fuel storage depot, bunk houses, a new kitchen and dining facility, a new shower and laundry facility attached to the lavatory building, mechanic’s shop, generator shack, core shack, log assay shack, recreation hall, sleep cabins, and office and first-aid buildings (Bender et al. 2007). There is no power available to site and the closest major power line is located approximately 150 km south in Meziadin Junction. Potable water is sourced from wells, and process water for the mill will be supplied from pit dewatering wells and would be reclaimed from the tailings pond (Kulla et al. 2011).


Two gravel airstrips, approximately 700 m in length, allows for fixed-wing aircraft and helicopters to access the camp. One is oriented in a general north-south direction and was established immediately west of the camp, adjacent to the eastern bank of Schaft Creek, while the second one is oriented in a northeast-southwest direction (Bender et al. 2007). The camp is primarily serviced via flights from the paved runway in Dease Lake, from gravel strips in Telegraph Creek, from the Burrage Creek strip on Highway 37, and from the airport in Smithers. Fixed-wing aircraft from Dease Lake (Tsayta Aviation Ltd.) and helicopters from Dease Lake (Pacific Western Helicopters Ltd.) have serviced the Project. Access within the Project area is available via a network of rough-service bulldozer trails (Caron et al. 2012).

In May 2011, the federal government announced the approval of the 287 kW Northwest Transmission Line (NTL) project to extend the BC hydropower grid 344 km north to Bob Quinn Lake, which is within 90 km of the deposit (press release May 9, 2011; Caron et al. 2012).

Various studies pertaining to the transportation, storage and loading of concentrate from the proposed Project have been completed by Copper Fox. Copper Fox has secured facilities for concentrate storage, loading, and shipping requirements at the Port of Stewart, BC, with Stewart Bulk Terminals Ltd. (Stewart Bulk Terminals). The Port of Stewart has the required capacity to accommodate the Schaft Creek concentrate, and it is the shortest distance from site to a deep-water seaport, rendering it as the most economic location from which to export the concentrate (press release October 13, 2011). The agreement reserves space for Copper Fox at the facilities for construction of a concentrate storage warehouse to store up to 50,000 t of concentrate and the use of the loading facilities at Stewart Bulk Terminals to meet the anticipated monthly loading requirements of the Project. Pursuant to the terms and conditions of the agreement, Copper Fox and Stewart Bulk Terminals are required to negotiate a Terminal Services Agreement that covers the terms and conditions for the storage and loading of bulk concentrate onto ocean going freighters for shipment of bulk concentrate. The agreement is assignable to another party and covers a term from October 12, 2011 through April 1, 2019 (press release October 13, 2011).

5.3.2 PROPOSED INFR ASTR UC TURE

In 2008, a prefeasibility study was completed on the Project (Bender et al. 2008). In this study, proposed infrastructure to support a 100,000 t/d fly-in-fly-out mining operation included access road, airstrip upgrade, office, mine and process buildings, open pit mine, tailings storage facility, three waste rock facilities, ground water wells, and a power transmission line.

Two access route options were identified for the Project in Bender et al. (2008). The first option (Mess Creek access route) extends north from More Creek along Upper Mess Creek, entering the proposed mine site area and Schaft Creek drainage near Snipe Lake. A second option (Tahltan Highland route) traverses a high-elevation plateau south of Mess Creek and descends slopes on the east side of Mess Creek to


intersect the first road option at km 25.5. A partially constructed access road parallel to More Creek extends to Highway 37 east of the Iskut River. The prefeasibility study assumed that the Mess Creek access route was the preferred alternative.

It is Tetra Tech’s opinion that there is sufficient suitable land available within the concessions for any future tailings disposal, mine waste disposal, and installations such as a process plant and related mine infrastructure.


6 . 0 H I S T O R Y

Various exploration-related activities occurred on the Property prior to ownership by Copper Fox. The majority of such activities were completed between 1957 and 2002, and are summarized in Table 6.1.

Table 6.1 Summary of Ownership and Exploration Activities, 1957-2002

Year Company Activity Comments Source

1957 BIK Syndicate

Claim staking, trenching

• Nearby discoveries led to exploration activities northward, mineral claims first staked in the region by prospector Nick Bird for the BIK Syndicate (consortium of Silver Standard Mines Ltd. (Silver Standard), McIntyre Porcupine Mines Limited, Kerr Addison Mines Ltd. and Dalhousie Oil Ltd.), 914.4 m hand trenching, rock chip sampling

Bender et al. (2007), Kulla et

al. (2011), Caron et al. (2012)

1965-1966

Silver Standard

Mapping, geophysical

survey, drilling

• Geological mapping (eight traverses), hand-trenching (3,000 ft), induced polarization (IP) survey, three diamond drillholes (629 m), (prospecting syndicate was re-organized into Liard Copper Mines in order to recognize the respective interests of its members and to consolidate the holdings in the area, Silver Standard, with a 66% interest, was the operator of the Project)


al. (2011), Caron et al. (2012)

1966 Paramount Mining Ltd.

(Paramount)

Soil sampling, geophysical

surveys

• 450 soil samples, IP and magnetic geophysical surveys, performed by Adera Mining Ltd. (the contractor), claim 517462

Kulla et al. (2011)

1966 Liard Copper Mines

Consolidation • Consolidated mineral tenures in area, optioned ground to Asarco

Caron et al. (2012)

1966 ASARCO Option property, airstrip

• Airstrip constructed, camp built Bender et al. (2007), Caron et

al. (2012) 1966 ASARCO Geological

mapping, drilling,

geophysical survey

• 24 diamond drillholes (3,353 m), IP survey Bender et al. (2007)

1967 ASARCO Airstrip • Second airstrip constructed Bender et al. (2007)

table continues…



1968-1977

Hecla Exploration, drilling,

geophysical surveys

• ASARCO options property to Hecla, airstrip extended, 30,891 m diamond drilling (contracted Canadian Longyear Limited to undertake the drill campaigns. The Hecla drill campaigns used Longyear 44 and Longyear 38 drill rigs to drill core with BQ and NQ size diameters), percussion drilling (6,500 m), IP and resistivity surveys, geological mapping (covered area of 10 by 6 miles at a scale of 1:400), aerial photography, engineering studies, local grid established (performed by Underhill and Underhill surveyors)


al. (2011), Caron et al. (2012), Copper Fox database

1969-1972

Paramount Drilling • 10 drillholes (2,924 m) Copper Fox database

1971 Geological Survey of Canada

Regional mapping

• Regional geology mapped at a scale of 1:250,000

Kulla et al. (2011)

1972 Phelps Dodge

Corporation of Canada

Ltd.

Geochemical survey,

trenching

• Soil and silt geochemical survey, cobra drill and bulldozer trenching (generally disappointing results, but one 10 ft sample in the longest trench, of 143 ft, yielded 0.38% copper), IP and magnetometer geophysical surveys (weak and discontinuous anomalies)

Kulla et al. (2011)

1974 Hecla Geophysical and

topographical surveys

• Established grid of cut lines, low level air photography, IP surveys completed by McPhar Geophysics Ltd. revealed the distribution of sulphides (in particular, the pyritic halo, which proved to be a reliable tool for predicting trends of mineral zones)

Kulla et al. (2011)

1978 Hecla/ Teck

Interest sold • Hecla sold interest to Teck Caron et al. (2012)

Late 1970s

Teck Sampling • 17 rock chip samples on claim 517462 (low copper and molybdenum grades)

Kulla et al. (2011)

1980 Teck Geophysical survey

• IP survey (performed by Phoenix Geophysics), dipole-dipole array with dipole lengths of 100 m on 300 m-spaced lines, results showed presence of strong northeast-striking IP anomaly associated with Main Zone (Liard Zone)

Kulla et al. (2011)

1980-1981

Teck Drilling • 119 diamond drillholes (24,810 m) (Thirty-Two Albert Crescent Limited contracted for drilling), contracted McElhanney Consulting Services Ltd. (McElhanney) to survey all drillhole collars using laser theodolite, resource estimate: 1 Bt @ 0.30% copper and 0.034% molybdenum disulphide (resource not NI 43-101 compliant)

Caron et al. (2012), Bender and McCandlish (2010), Copper Fox database

table continues…



1981 Teck Sampling • 5 rock chip samples (45 m) on claim 517462 (insignificant results)

Kulla et al. (2011)

1980-2002

Teck Engineering studies

• Various engineering studies and reviews, little to no exploration work

Caron et al. (2012)

2002 Teck/ Copper Fox

Option transfer • Copper Fox acquired claims, total of 230 diamond drillholes (60,200 m) and percussion drilling (6,500 m) completed by that time

Bender et al. (2007), Caron et

al. (2012)

2005 Pembrook Mapping and sampling

• On Pembrook claim, limited reconnaissance mapping program, collected five rock samples (3.56 g/t gold, 4.6 ppm silver, 2.06% copper, and 805 ppm molybdenum, and 1.52 g/t gold, 32.5 g/t silver, 6.40% copper, and 679 ppm molybdenum. In addition, a 4.0 m chip sample yielded 0.610 g/t gold, 3.8 g/t silver, 0.848% copper, and 98 ppm molybdenum)

Kulla et al. (2011)

2006 Pembrook Sampling • Follow-up work to 2005 program, 24 rock samples on Pembrook claims, identified two gold and copper anomalous zones

Kulla et al. (2011)

2008 Greig and Kreft

Sampling • Reconnaissance sampling spaced 25 m apart, 183 soil samples, 17 grab and chip samples (averaged 1.24% copper, 16 g/t silver and 0.07 g/t gold)

Kulla et al. (2011)

The positive results from the grab sampling performed by Pembrook and Greig/Kreft prompted Copper Fox to acquire those mineral tenures.

Two hundred and thirty one holes, totalling 59,567 m, were drilled prior to Copper Fox’s ownership of Schaft Creek. This drilling is summarized in Table 6.2 and locations are shown in the plan map provided in Figure 6.1.

Table 6.2 Summary of Historic Drilling

Year Company Number of Drillholes

Total Length

(m)

1956 Silver Standard 3 629 1966 ASARCO 24 3,334 1968-1977 Hecla 75 27,869 1969-1972 Paramount 10 2,924 1980-1981 Teck 119 24,810 Total - 231 59,567


Figure 6.1 Location Map (Plan View) of Drillholes Completed Prior to Copper Fox Ownership of Schaft Creek


7 . 0 G E O L O G I C A L S E T T I N G A N D M I N E R A L I Z A T I O N

7 . 1 G E O L O G I C A L S E T T I N G

7.1.1 REGION AL GEOLOGY

The following description of the regional geology is paraphrased from Caron et al. (2012), unless otherwise stated.

The Schaft Creek deposit is hosted by Stuhini Group (Stikine Terrane) basaltic to andesitic volcanic rocks of the Mess Lake facies, which are Upper Triassic in age. These volcanics are intruded by dacite to granodiorite dikes, whose origin is interpreted to be the nearby Hickman batholith (Scott et al. 2008). The regional geology of the area is depicted in Figure 7.1. Caron et al. (2012), attribute most of the following geological description to Logan et al. (2000).

The Mess Lake facies is a vent-proximal, submarine to sub-aerial volcanic assemblage that unconformably overlies the Lower Permian limestone. This facies is, in turn, unconformably overlain by Lower Jurassic conglomerate. The Mess Lake volcanic sequence is estimated to be upwards of 800 m thick, but is truncated on the west side by the Hickman and Yehiniko plutons, while the south side is faulted against Paleozoic rocks.

The generalized stratigraphy, as interpreted in Logan et al. (2000), and simplified in Caron et al. (2012), consists of:

(1) a basal sedimentary succession or mafic tuffaceous succession (uTSmt), (2) a medial volcanic succession characterized by flows and breccias with a central tuff unit (uTSvb, uTSvt, uTSpp), and (3) an upper tuffaceous sedimentary succession. West of Mess Creek, maroon to green amygdaloidal plagioclase and pyroxene-phyric basalt flows, breccias and tuffs, and dun-weathering, olivine-rich basaltic tuffs at least 800 m thick are intruded by trachytic sills of coarse-bladed plagioclase and pyroxene porphyry, probable feeders to overlying volcanics.

The medial volcanic succession consists of dark grey, massive, plagioclase phyric basalt and similarly textured sub-volcanic rocks. This basalt is typically fine-grained with 0.5 to 1 mm plagioclase phenocrysts to approximately 30%, as well as several percent of pyroxene phenocrysts. Outcrops are generally massive with rare visible extrusive textures; however, breccia and amygdaloidal textures are recognized locally in talus blocks. The contacts of the basalt are not well exposed, except where it is intruded by hornblende diorite to monzonite dikes of the Hickman batholith.


Figure 7.1 Regional Geology of the Schaft Creek Deposit

Source: Modified after Caron et al. (2012)


On Mount LaCasse (7 km north of the Schaft Creek camp), tuffs of the central volcanic unit are observed to overlie basaltic rocks of the medial volcanic unit. These tuffs are mostly massive to weakly bedded, polylithic, grey to mauve lapilli and crystal tuffs, which form thick sections underlying the east-facing slope of the mountain overlooking Mess Creek. Crystal fragments consisting of plagioclase and augite are common constituents of the tuff. Due to the inconsistency of observable beds, measurable attitudes are rare, although those noted indicate steep dips. This same succession of the central volcanic unit underlies the west-facing slopes above Schaft Creek.

The upper tuffaceous/sedimentary succession is generally made up of well-bedded, very fine-grained green tuffs, tuffaceous siltstone-sandstones, and wackes. These can be found exposed on the northwestern slopes of Mount LaCasse. This succession is up to approximately 150 m thick, but is thinned considerably along the western margin, where it is faulted against the lower basaltic unit. The succession also thins to the northeast, meaning its usefulness as a marker unit are limited. At 4 km to the south of Schaft Creek, the exposed areas of the upper succession consist of volcanic conglomerate, interbedded sandstone and siltstone, pyroxene crystal sandstone, and limy siltstone. Fossils that have been identified in these layers are from the Late Triassic.

The Hickman batholith is interpreted to be the source of the hydrothermal fluids that formed the mineralization at Schaft Creek. It is a large, complexly zoned felsic to intermediate intrusive body to the west of the deposit.

For more comprehensive and detailed investigations of the regional and property geology, more information can be found in Scott et al. (2008), and Logan et al. (2000).

7.1.2 PROPERTY GEOLOGY

Recent work on the Property by Cambria includes a re-interpretation of the deposit type. Although this interpretation is presented below, it can be considered at this point only a hypothesis. The common interpretation of Schaft Creek as a porphyry deposit remains the working model. Figure 7.2 depicts the Property geology. The following description of the Property geology is modified from Caron et al. (2012).

LITH OL OGIES

Previous work on the Schaft Creek deposit has generally considered the deposit in terms of a calc-alkalic copper-molybdenum porphyry system related to an elongate, high-energy, structurally controlled breccia system. Work by Cambria in 2010 and 2011 has led to the conclusion that a rather different deposit model may better describe the deposit. Although the Schaft Creek deposit bears some characteristics of a calc-alkalic porphyry copper deposit (broadly disseminated sulphide mineralization, certain alteration sequences including potassic and phyllic alteration), several key characteristics are notably absent, including a significant distal pyrite halo and significant argillic alteration. Schaft Creek may be better described as a


polymetallic (copper, molybdenum, gold, and silver), structurally controlled, low-sulphidation, hydrothermal replacement deposit, with mineralization and alteration related to intrusion of a series of dike-like feldspar-quartz porphyry bodies along a splay of the Mess Creek fault. The deposit formed in a volcanic arc setting, likely on a back-arc rifted continental fragment.

Figure 7.2 Property Geology of the Schaft Creek Deposit

Source: Caron et al. (2012)


From Caron et al. (2012):

The Schaft Creek property lies between the Mess Creek valley and Schaft Creek in a north-south oriented complex of intermediate to mainly mafic volcanic rocks (Mess Creek volcanic facies of the Stuhini Group) dominated by basalt and andesite tuffs and flows. The thickest volcanic unit of the medial volcanic succession (Mess Creek facies) (identified by Logan et al. 2000) hosts the Schaft Creek deposit. This unit varies in colour from maroon to green and is comprised of roughly equal amounts of flows and tuffs of variably augite phyric, plagioclase phyric, augite-plagioclase phyric, and aphyric basaltic andesite. Sub-volcanic intrusive rocks are difficult to distinguish from the extrusive volcanics in this sequence. Logan et al. (2000) reported the basaltic andesite is locally pillowed for 3 km north and south of Schaft Creek, and bedding attitudes in intercalated tuffs are steeply inclined to the northeast or southwest. In the deposit area, bedding orientations are not obvious; however, in the Main Zone, the bedding orientations are thought to be shallow to moderate, easterly to westerly dipping.

The west facing slopes above Schaft Creek consist of maroon and green, fine ash and plagioclase-rich crystal tuff, intermixed with purple monolithic augite phyric lapilli tuff and thin purple basalt flows. Epiclastic horizons include polylithic cobble to boulder conglomerates with clasts of green and black augite phyric basalt; maroon plagioclase porphyry; green, epidote-rich altered volcanic rock; and purple aphyric basalt.

It is unlikely the chemical composition of the andesitic basalt host rock had significant control, if any, on mineralization at Schaft Creek. Instead, local areas of coarse pyroclastic volcanics with correspondingly greater permeability and porosity may have served as a preferential host for mineralized hydrothermal fluids emanating from nearby the intrusive rocks.

A number of outcrops of aphanitic rhyolitic volcaniclastic rocks are reported (Scott 2008) north of the deposit area and are likely analogous to the roughly 150 m thick succession of tuffaceous siltstone-sandstone and well-bedded, fine-grained tuffs that comprise the upper units of the Stuhini Group.

Between Schaft Creek and Snipe Lake on the lower southwestern slopes of Mount LaCasse, the andesitic to basaltic volcanic rocks are locally intruded and brecciated by narrow and locally discontinuous dikes and apophyses emanating from the Hickman batholith. The most mineralized and altered intrusions are generally proximal to the breccias in the northern portion of the deposit, where breccias cross-cut one of the larger intrusive dikes. Further south, intrusive dikes in the Main Zone are found a few hundred metres to the east of the breccia.

These intrusive bodies follow a series of shatter zones and near-vertical faults that trend north-northwest. The dikes are quartz modal and are predominantly granodiorite in composition.


The intrusive rocks exercised significant control on distribution and type of mineralization and alteration, and multiple phases of quartz-modal intrusive rock may be present at Schaft Creek. Both equigranular granitic and feldspar quartz-porphyritic varieties have been noted, with considerable variation in the degree of alteration and mineralization among individual examples.

Positive identification of the intrusive rocks is hampered by strong to intense, and often overlapping, alteration assemblages that obscure primary textures. Recent work by Cambria has led to the conclusion that many of the sill-like or flat-lying intrusive bodies that have been mapped to the east of the breccia are actually porphyritic volcanic flows that have been overprinted by strong albitic alteration.

As mentioned above, Cambria has re-interpreted the deposit type and revised the geological interpretation of Schaft Creek. Historically, the deposit has been divided into three mineralized zones: the Main (Liard) Zone, the Paramount Zone, and the West Breccia Zone. Cambria has re-interpreted the Paramount Zone and the West Breccia Zone as a single contiguous breccia zone running roughly north-south for approximately 2.1 km.

The Main Zone is roughly circular in plan view. It lies immediately to the west of Snipe Lake in the saddle zone south of Mount LaCasse. The dominant host rocks of the Main Zone mineralization are andesitic to basaltic fragmental rocks of varying textures and degrees of sorting. These are crosscut by dike-like intrusive bodies. According to Cambria’s interpretation, the fragmental rocks form a ring-shaped, pipe-like body with a steep plunge to the north-northwest. The recent re-interpretation suggests that the volcanic pyroclastic rocks, may in fact be hydrothermal breccias.

The West Breccia Zone (to the immediate west of the Main Zone) and the Paramount Zone (to the north) are now interpreted as a single, continuous zone, which is simply named the Breccia Zone. This zone generally consists of variably altered intrusive and volcanic rocks, occurring frequently as heterolithic (polymictic) breccias. The clasts occur in a wide range of sizes from millimetre to cobble-sized, as well as subangular to angular. The matrix consists of altered rock flour, hydrothermal cement, or, in some cases, fine-grained igneous material, which ranges from matrix-supported to clast-supported. The Paramount Zone contains a relative abundance of igneous matrix material when compared with the West Breccia Zone, which could indicate a greater depth within the system. The Paramount Zone also features hypidiomorphic, equigranular to porphyritic granodiorite dikes.

ALTER ATION


Hydrothermal activity at Schaft Creek was a complex series of overlapping events related to fault reactivation, hydraulic fracturing, intrusion, and fluid degassing. This has resulted in early developed alteration facies being overprinted by later alteration facies, both retrograde and prograde, particularly within the breccia in


the Paramount Zone, where field evidence supports several stages of breccia reactivation. Alteration zoning is accordingly complex, with telescoping and overprinting of both pro-grade and retrograde phases. In detail, alteration assemblages sometimes appear contradictory but can generally be appreciated when considered in the light of complex structural reactivation and hydrothermal overprinting.

Extensive re-logging of existing drill core stored at the Schaft Creek camp was carried out during the 2011 field season. This work, combined with core re-logging performed by Cambria in 2010 and logging by Cambria of new core from the 2010 and 2011 drilling programs, has provided sufficient data to define the following general alteration framework for the Schaft Creek deposit, with alteration phases listed from oldest to youngest. Ongoing QEMSCAN microanalysis, chemical analysis, and petrographic work by Dr. Nicholas Le Boutillier have also contributed to this discussion:

• Widespread diagenetic development of chlorite and minor carbonate in the mafic basaltic andesite volcanic pile (this alteration predates hydrothermal alteration and mineralization). Development of hematite in some parts of the volcanic pile (e.g., purple volcanics seen to the northeast of the Main Zone) may also be diagenetic.

• Ubiquitous weak to moderate phyllic alteration consisting of sericitization of primary feldspar phenocrysts as a precursor to the main sodic alteration and mineralization phase…

• Sodic feldspathization, primarily affecting extant feldspar phenocrysts, with alteration ranging from rims of sodic feldspar to complete replacement… The primary pulse of sulphide mineralization (disseminated and fracture-filling chalcopyrite, bornite, and molybdenite) appears to have been synchronous with this prograde alteration, and both alteration and mineralization appear to be closely related to intrusion of irregular sub-vertical, dike-like bodies of quartz-bearing feldspar porphyry. Sodium metasomatism occurred at fairly deep levels in response to increasing temperatures within highly saline fluids as they approached the axis of faulting and intrusion along a prograde thermal path. In the Main Zone at least, this phase of alteration and sulphide mineralization appears to be preferentially hosted, in part, within coarse fragmental volcanics (aerial lapilli tuffs to coarse agglomerates) that have been structurally prepared by faulting that both preceded and was synchronous with intrusion, alteration, and mineralization…

• Potassic alteration, consisting of development of fine-grained biotite hornfels proximal to intrusive bodies within the Paramount Zone and orthoclase replacement/veining in the Main Zone and both the West Breccia Zone and Paramount Zone. Some of the potassic hornfels in the Paramount Zone was subsequently incorporated into breccias, where biotite hornfels clasts are locally significant components of polylithic breccias… To a significant degree, potassic alteration (i.e., pink


feldspathization) correlates with mineralization in both the Main Zone and the breccia zone… [There is] a zone of pink feldspathization that includes most of the Main Zone and extends along the east side of the breccia in the Paramount Zone. Another narrow zone of potassic alteration is coincident with the West Breccia Zone in the area west of the Main Zone but diverges to the northwest from about 6360500N. Perhaps not coincidentally, the attitude of the portion of this alteration zone that diverges to the northwest mirrors the attitude of several zones of northwest-trending steep faulting, including a major fault zone located ~200 m to the northeast.

• Patchy phyllic alteration, consisting of local silicification (quartz flooding) and development of local stringer and disseminated pyrite. This alteration, most likely contemporaneous with or slightly later than potassic alteration, is a lower temperature prograde event. The liberation of abundant hematite due to the destruction of mafic minerals such as hornblende may be part of this alteration event. Hematite is far more abundant than pyrite at Schaft Creek, forming during diagenesis as well as during phyllic alteration.

• Retrograde propylitic alteration, resulting in the development of dark (iron-rich?) chlorite and locally strong epidote overprinting ... This alteration phase has also resulted in the remobilization of some considerable fraction of the sulfides into veins and fractures.

• Late-stage development of ubiquitous carbonate, both within the matrix and as fine irregular stringers. A very weak argillic overprint as sparse alunite within carbonate veins is most likely contemporaneous with carbonate development. Sparse gypsum and anhydrite veins are also part of this late-stage alteration.

STRUCTUR E


…Brittle deformation at Schaft Creek is primarily reflected in shattering, shearing, and faulting at all scales, ranging from crushing and grinding of individual rock-forming minerals to very significant large-scale faults that are represented by thick zones of clay gouge and mylonite. As a result, topographic expression of the deposit is generally recessive and the near-surface levels of the deposit (particularly in the Paramount Zone) are strongly broken and rubbly to depths exceeding 100 m, resulting in difficult drilling with poor core recoveries, as well as challenges in correlation of structures between sections.

…the faults and fault-related structures (shears, shatter zones, etc.) at Schaft Creek can be generally categorized into three sets:

• An en echelon set of shatter zones that trend northwest (319°) and dip steeply to the northeast (~85°). This structural set is congruent with


fundamental linear features noted in the resistivity survey and with several strong features that are evident in the topographic lineament study. Additionally, a significant intrusive dike generally follows this trend... The shattering is likely part of early regional faulting.

• A set of faults and shatter zones that trend northeast (44°) and dip moderately to the northwest (45°). Three shatter zones along this trend can be mapped over the Paramount Zone, and two well-defined individual fault planes are found in the Main Zone to the south. These faults and shatter zones appear to slightly displace earlier faulting, including faults that trend to the northwest (described above) and a set of sub-horizontal faults described below. In addition, the breccia zone appears to show local minor displacement along this trend, suggesting that motion along this fault trend was episodic over a period of time.

• An early set of sub-horizontal faults that strike to the northwest and dip gently at ~10° to the northeast. These faults occur in the Main Zone where they appear to provide a general downward bound to both mineralization and alteration. The faults are, in part, stacked and are cut by the northeast-trending fault set described above. It is likely that these faults represent several sub-horizontal planar faults that have been disrupted by normal faulting (i.e., northwest-side down) along faults belonging to the northeast-trending fault and shatter zone set.

[Figure 7.3] depicts a three dimensional model of the fault structures at Schaft Creek, looking to the northwest.

A well-defined, contiguous zone of breccias (West Breccia Zone and Paramount Zone) extends along the west margin of the Main Zone and to the north for a total length of at least 2.1 km. Geophysical mapping to the south of the Main Zone shows quite clearly that the breccia extends at least another 1.1 km to the south, for a total of at least 3.2 km. The breccia most likely extends even further to the south, but available data do not allow additional projections. To the north, drilling and currently available geophysical mapping do not support extending the breccia beyond the current limits of mapping (6361300N), although the breccia may be offset in this area toward the northwest along a steep northwest-trending fault zone…


Figure 7.3 3D Structures of the Schaft Creek Deposit

Source: Caron et al. (2012)

7 . 2 M I N E R A L I Z A T I O N


[In works completed prior to Cambria in 2011,] mineralization at Schaft Creek has been described in terms of three separate zones: the Main (or Liard) Zone, the Paramount Zone, and the West Breccia Zone. Although mineralization in the Main Zone and the West Breccia Zone is found in two generally spatially separate areas in the southern portion of the Schaft Creek deposit, the same cannot be said for mineralization found further to the north. There, most mineralization is hosted within structurally prepared and altered breccias, with a lesser amount of mineralization found in proximal volcanic units. It seems clear that mineralization at Schaft Creek can be readily described in terms of an earlier phase of mineralization in the Main Zone and a later phase of mineralization related to breccias and proximal volcanics found along the west margin of the Main Zone and extending to the north.

7.2.1 MAIN (L IARD) ZONE

The description of the Main Zone is extracted from Caron et al. (2012):


… the Main Zone forms a tabular zone that extends up to 1.1 km in the east-west direction and more than 1.2 km in the north-south direction. The base of this zone dips shallowly toward the north at ~15°, as well as to the west at ~15°. The majority of the mineralization and alteration lies above a series of sub-horizontal faults that dip gently to the northwest.

Some of the mineralization in the Main Zone is related to intrusion of feldspar quartz-porphyry dikes that follow the trend of a series of northwest-trending steep faults and shatter zones that strike at 319°. These dikes show some relatively minor right-lateral offset along faults that strike at 045° and dip 45° to the northwest. Another dike trends north-northeast and appears to be closely associated with the majority of the mineralization found in the Main Zone. This dike cuts the southern and eastern portions of a ring-shaped structure of coarse fragmental rocks that may represent an early breccia pipe. In general, these fragmental rocks are generally closely associated with mineralization and alteration, most likely due to relatively high permeability and porosity. Additional mineralization is also related to younger breccias in the West Breccia Zone, with mineralization hosted within and proximal to the breccias, as well as along relatively flat-lying structures that host significant molybdenite.

Sulphide mineralization in the Main Zone consists of chalcopyrite, bornite, molybdenite, and lesser pyrite, mostly present as irregular stockworks in all rock types, although it is preferentially hosted in coarse fragmental units to some degree. Relatively little disseminated mineralization is found, perhaps due to remobilization of sulphides during subsequent episodes of alteration.

7.2.2 BRECC IA (PAR AMOUNT & WEST BR ECCIA) ZONE

The description of the Breccia Zone is extracted from Caron et al. (2012):

The breccia zone apparently developed relatively late in the evolution of the Schaft Creek hydrothermal system, with linear, contiguous breccias cutting many faults and intrusive bodies. The only clear exception to this is found in the late northeast-trending, northwest-dipping fault set where small offsets in the breccias are noted.

Much of the mineralization in the breccia zone is hosted by the strongly altered and structurally prepared breccias. Some mineralization with fairly good grade is found in volcanic units proximal to the breccias, as well as along the margins of some intrusive dikes. Further removed from the breccias are areas of generally lower grade.

Sulphides in the breccia consist of chalcopyrite, bornite, molybdenite, and pyrite. Chalcopyrite and bornite occur as fine veinlets and disseminated patches in the altered finer-grained matrix of the breccia or as local patches of sulphide matrix, with minor amounts in intrusive and volcanic clasts. Minor grey quartz patches locally accompany Cu sulphides. Pyrite is generally not abundant in the breccia


zone, although a few locations are seen where pyrite is dominant. Early quartz-rich veinlets are present in local intrusive clasts. The Cu grades in the breccia zone exceed 0.5% Cu, most notably in the Paramount Zone between 6360700N and 6361050N. These relatively high grades are likely related to greater permeability and porosity, as well as to episodic alteration and mineralization along the breccia zone.

7 . 3 P R O S P E C T S

The high-resolution magnetic and Quantec Titan surveys, discussed later in Section 9.0, identified a number of significant structural features typical of a porphyry copper district within the Property area. These include the Discovery, ES, and GK Zones of copper mineralization, and the Mike chargeability anomaly. The Discovery Zone, located roughly 2.5 km northwest of the centre of the Paramount Zone was drill tested by 2011CF422 and confirmed the presence of mineralization. The Mike Zone is situated immediately east of the deposit, over the ridge of Mount LaCasse. The ES Zone is located approximately 3 km north of the Paramount Zone and has an extent of about 1,100 m long by 300 m wide. The 32 samples collected from this zone averaged 0.87% copper and 0.31 g/t gold. The GK Zone is located approximately 3 km north of the ES Zone and has an extent of least 1,700 m long by 250 m wide. The 17 grab and chip samples collected from the GK Zone averaged 1.24% copper, 16 g/t silver and 0.07 g/t gold. The locations of these anomalies are shown in Figure 9.3.


8 . 0 D E P O S I T T Y P E S

Schaft Creek is described as a calc-alkalic copper-molybdenum-gold-silver porphyry deposit.

8 . 1 D E P O S I T M O D E L

Porphyry deposits are the world’s most important source of copper and molybdenum, and can be major sources of gold and silver as well. Porphyries account for about 50 to 60% of world copper production and more than 95% of world molybdenum production. These deposits are large, low- to medium-grade deposits, characterized by structurally controlled primary sulphide mineralization related to felsic and/or intermediate porphyritic intrusions. Their large size, as well as their structural features and characteristic alteration systems distinguish them from other hydrothermal alteration-related mineral deposit types (Sinclair 2008).


Figure 8.1 Global Distribution of Porphyry Deposits

Source: Sinclair (2008)

N


Geographically, porphyry deposits occur throughout the world in narrow, but extensive linear metallogenic provinces (Figure 8.1). Predominantly they are associated with Mesozoic to Cenozoic orogenic belts, like the Western Cordillera of North and South America. Although there are examples of porphyries throughout earth’s history, from Archean to present, the vast majority of economic deposits are Jurassic aged or younger (Sinclair 2008).

Tectonically, porphyry deposits occur in a variety of settings, both continental and island-arc related. Typically, however, porphyry copper deposits tend to form in the root zones of andesitic stratovolcanoes, in subduction-related settings. Schaft Creek is hosted by island-arc related volcanic rocks ranging from Andesitic to Basaltic, indicating that the deposit may have formed in either a period of subduction or extension during terrane formation. Large-scale, regional structures also tend to play a role, particularly in porphyry belts with multiple deposits. In addition, cross-structures also play a role in individual deposit formation. Schaft Creek is closely related to splays off of the Mess Creek fault, a relatively large-scale crustal feature in the area (Caron et al. 2012).

Porphyry deposits tend to form in close association with porphyritic epizonal to mesozonal intrusions, with a close temporal relationship between magmatic activity and hydrothermal mineralization. This can be denoted by the presence of intermineral intrusions and brecciation during and/or between periods of mineralization (Sinclair 2008).

Geometrically, porphyry deposits are highly variable, and can occur in irregular shapes as well as more regular oval or circular patterns. There may also be various amounts of overlap or overprinting of deposits. In addition, alteration patterns need not mimic that of the mineralization but may extend for hundreds to thousands of metres (Sinclair 2008).

The mineralogy of porphyry deposits can be highly varied, depending on many factors. The principal ore minerals of copper porphyries are chalcopyrite, bornite, chalcocite, tennantite, enargite, other copper sulphides and sulphosalts, molybdenite, and electrum, with associated minerals including pyrite, magnetite, quartz, biotite, K-feldspar, anhydrite, muscovite, clay minerals, epidote, and chlorite.

Hydrothermal alteration tends to be extensive in and surrounding porphyry deposits, and generally follows a zonation pattern on the deposit scale (Figure 8.2) as well as surrounding veins and/or fractures. Typically there is an inner potassic zone (characterized by K-feldspar and/or biotite), an outer zone of propylitic alteration (characterized by quartz, chlorite, epidote, calcite, and albite associated with pyrite), and variably intermediate zones of phyllic (quartz, sericite, and pyrite) and argillic (quartz, illite, pyrite, kaolinite, smectite, montmorillonite, and calcite) alteration. Economic sulphide zones are usually associated with the potassic alteration zone.

Porphyry deposits are categorized based on grade of the various contributing metals. Schaft Creek falls under the porphyry copper designation, having copper grades


between 0.2% to more than 1%; molybdenum grades between 0.005% to about 0.03%; gold grades from 0.004 to 0.35 g/t; and silver grades from 0.2 to 5 g/t. Although this designation can be a useful tool for deposit comparison, there exists a continuum between porphyry copper and porphyry molybdenum deposits, such that making clear distinctions is difficult.

Exploration models for porphyry copper deposits focus on the alteration halos and the commonly extensive pyritic halo surrounding most copper porphyries. Due to the apparent lack of this pyritic halo at Schaft Creek, as well as any argillic alteration zone, exploration has instead focused on structural trends, particularly the breccia unit hosting the Western Breccia and Paramount Zones.

Figure 8.2 Generic Cross-section of a Porphyry Copper-(Molybdenum-Gold) Deposit

Source: Richards (2003)

8 . 2 R E C E N T W O R K

In recent work completed by Cambria, it has been suggested that the deposit type may better be described as a “polymetallic (copper-molybdenum-gold-silver), structurally controlled, low-sulphidation, hydrothermal replacement deposit” (Caron et al. 2012). Currently, the Cambria interpretation is a hypothesis, and further work will need to be done to verify this theory. For the purposes of this report, Tetra Tech has


treated the Schaft Creek deposit as a calc-alkalic copper-molybdenum-gold-silver porphyry deposit, with a low-sulphidation state, and overlapping mineralized zones.

In the opinion of the QPs, Schaft Creek is considered to be an example of a porphyry system based upon the following reasons:

• The tenor of copper, molybdenum, silver, and gold grades, along with large tonnage.

• Copper-bearing igneous rocks intrude the host volcanic and sedimentary rocks.

• Mineralization is spatially and temporally associated with the intrusive breccia and hydrothermal alteration of the intrusive and breccia bodies.

• There have been multiple emplacements of successive intrusive phases and numerous breccias

• The hydrothermal alteration is extensive and zoned. The alteration assemblages are consistent with a porphyry environment.

• Mineralization is generally situated within well-developed quartz-sulphide stockworks, veins, and breccia zones.

• Large zones of veining and stockwork mineralization, in conjunction with minor disseminated and replacement mineralization throughout large areas of intrusive breccia and hydrothermally altered rock.


9 . 0 E X P L O R A T I O N

Copper Fox acquired the Project in 2002 and work completed since then has included a photogrammetry survey, geological mapping program, various geophysical surveys, re-logging and sampling of historic core, drilling, and various studies including lithogeochemical, environmental baseline, petrographic, density measurement, mineralization characterization and metallurgical testing. A summary of the exploration work programs completed by Copper Fox to the report effective date are summarized below.

9 . 1 P H O T O G R A M M E T R Y S U R V E Y , 2 0 0 5

In 2005, Copper Fox retained Eagle Mapping Ltd. to complete a photogrammetry survey at 5 m contour intervals and at a scale of 1:2,000. The purpose of the survey was to provide sufficient topographic resolution to support prefeasibility and feasibility level studies (Kulla et al. 2011).

9 . 2 G E O L O G I C A L M A P P I N G , 2 0 0 7

In 2007, Copper Fox conducted a prospect-scale geological mapping program on the Property. The program encompassed an area of 3.6 by 2.6 km (936 ha) and was performed at a scale of 1:5,000, using global positioning system (GPS) control. Targeted outcrops were identified by airphoto interpretation and archival geological maps. Locations were subsequently plotted on the 1:5,000 topographical base map derived from digital orthophoto geo-referenced maps produced by Eagle Mapping Ltd. in 2005 (Hanych and Ewanchuk 2007). The maps produced from this program are provided in Appendix B.

9 . 3 G E O P H Y S I C A L S U R V E Y S , 2 0 0 7

In 2007, Copper Fox retained Associated Geosciences Ltd. to perform various geophysical surveys over the Property area. The main objectives for the surveys were to:

• map mineralization in a region to the north of the camp

• determine if known mineralization, occurring at relatively shallow depths, is continuous beneath a certain swampy region

• map bedrock topography at the planned location of mining process structures and on the eastern flank of the projected production mining pit

• determine the connectivity of two areas of mineralization (Paramount and Liard Zones).


To meet these objectives, a combination of methods such as IP, electrical imaging (EI), magnetic total field, very-low frequency electromagnetic (VLF-EM), seismic refraction and controlled source audio magnetotelluric (CSMAT) were utilized. The surveys covered approximately 8.1 km2. Survey line lengths and number of stations used for each method are summarized in Table 9.1.

Table 9.1 Survey Line Lengths

Method Total Line

(km) Total No.

of Stations

IP/EI 4.5 - Magnetics 25.3 - VLF-EM 25.3 465 CSAMT - 46 Seismic Refraction 4.3 -

The survey was performed between September 11 and 27, 2007, with a five-person field crew. A 250 to 300 m wide induced polarization-chargeability anomaly was found immediately east of the Liard Zone, in an area never previously explored by drilling or geophysical surveys. However, this anomaly has not been detected in subsequent geophysical surveys. The reader is referred to Robillard (2008) for further details regarding survey parameters and for results.

9 . 4 Q U A N T E C T I T A N - 2 4 D C I P A N D M T S U R V E Y S , 2 0 1 0 - 2 0 1 1

9.4.1 PHASE I

In 2010, Copper Fox retained Quantec Geosciences Ltd. to conduct a Titan-24 direct current induced polarization (DCIP) and magnetotelluric (MT) survey. The objective of the survey was to map potential targets to depths of 1,500 m to assist in the definition of drill targets. Data were acquired over nine DC/IP/MT spreads along five lines with 100 m station intervals and approximately 400 m line spacing. A total of 28.2 km DC/IP survey lines and 22 km of MT survey lines were completed. The survey was performed between April 27 and May 21, 2010. For the DC and IP measurements, a pole-dipole configuration was used (Gharibi and Eadie 2010).

The DC, IP and MT data were inverted using the two dimensional inversion algorithms to produce cross‐sections of the resistivity and chargeability distributions of the subsurface. The MT data were inverted using an inversion code to provide images of the resistivity distribution up to 1,500 m below the surface. All the inversions, including MT, incorporated topography. The main results of Phase I of the survey are as follows (Gharibi and Eadie 2010):

• The chargeability anomaly formed by the Schaft Creek deposit was extended an additional 800 m to the north and 800 m to the south, with the anomaly having a strike length of 3,200 m.


• At a depth of 700 m below surface, the chargeability anomaly located in the center of the Schaft Creek deposit measures 1,000 m long by 500 m wide and is open at depth.

• The chargeability anomaly suggests that the majority of the historical drilling was completed on a possible flank of the deposit (Liard Zone) and was too shallow to test the deeper part of the anomaly.

• The survey failed to reconfirm the chargeability anomaly identified in 2007.

9.4.2 PHASE I I

Follow-up work to the Titan-24 DC/IP/MT survey was performed between September 22 and October 11, 2010. Phase II was an extension to the previous survey conducted over the same area, and data were acquired over five DC/IP/MT spreads along five lines with 100 m station intervals. Four survey lines were oriented in east-west direction with approximately 400 m line spacing. One tie‐line was surveyed in north-south direction. A total of 12 km DC/IP survey line (plus current extension) and 12 km of MT survey line were surveyed. A pole‐dipole configuration was used for DC and IP measurements. The main objective of Phase II was to comprehensively explore the Schaft Creek horizon for geophysical anomalies that had corresponding deposit signatures outlined in Phase I (Gharibi and Faucher 2010). Phase II surveyed the area over the Mike Zone and the recently acquired ES and GK Zones (all within a 6 km strike length) located north of the Schaft Creek deposit (press release September 6, 2011).

Primary results from Phase II are summarized in Gharibi and Faucher (2010):

The eastern part of the survey grid displayed a high resistivity background containing an elevated conductivity feature with resistivity of ~1500 Ωm in a ~N‐S orientation. This anomaly displays an eastwards dipping trend that extends to great depth of more than 1000 m. The conductive anomalous body displays a resistivity of ~500 Ωm at this depth and constitutes the easternmost part of the survey grid. The western and northern parts of the survey grid display the most conductive materials with resistivity as low as 500 Ωm. A large conductive body in the westernmost part correlates with Hickman batholith. The shallow conductive zones resolved in the western part construct an elongated conductive body with a ~NNW‐SSE trend. The elevated conductive features in this area associate with outcrop of Hickman rocks and volcanic rocks in the Main Zone and Paramount Zones. The West Breccia Zone is distinct in this area with slightly higher resistivity of ~2000 Ωm. The southern part of the survey grid generally displays resistive materials with resistivity of a few thousand of Ωm. This zone partially associates with Andesitic Volcanic rocks in this area. The chargeability models generally display a very low chargeability in the eastern part of the grid. In the western part of the grid the chargeability cross‐sections display elevated chargeability in an area associated with Main, West Breccia, and Paramount Zones. The southern portion of the western part of the grid illustrates a highly chargeable subsurface that extend beyond the survey grid. The two southernmost lines (L800S and


L400S) surveyed in the phase II of the Schaft Creek project revealed a large and highly chargeable area. A chargeable anomaly is resolved in the central part of these lines at a depth of ~100m with a chargeability of more than 40 mrads. The anomaly appears to extend to depths greater than 400 m. The northernmost lines (L2000N and L2400N) surveyed in the phase II display a slightly elevated chargeable feature in the central part of the line. The anomaly shows a maximum chargeability of ~20 mrads in a ~N‐S orientation. This chargeable zone is the northern extension of the chargeable anomalies resolved in the central part of this area. A total of 16 potential targets with different priority levels have been resolved along the survey lines surveyed in phase II of the Schaft Creek project. The potential targets are prioritized as High, Moderate, or Low, and their intermediate ranges based on the category of the chargeability and conductivity of the anomalies as well as the size.

9.4.3 PHASE I I I

Following positive results obtained from Phases I and II, Phase III of the survey was executed between July 23 and August 22, 2011. The survey included 13 DC/IP/MT spreads along 12 lines with 100 m station intervals. Ten survey lines were oriented in east-west direction and two tie‐lines were surveyed in a north-south orientation. The survey lines were spread over two survey grids. Three of the east-west oriented survey lines were located in the northern grid in an area northwest of the main grid (lines L8000N, L8400N, and L8800N). A total of 30 km DC/IP survey line and 30 km of MT survey line were surveyed. For DC and IP measurements, a pole‐dipole configuration was used. The objectives of Phase II were to further explore the Schaft Creek horizon for geophysical anomalies initially defined in Phase I and Phase II (Gharibi et al. 2011).

Primary results from Phase II are summarized in Gharibi et al. (2011).

The most conductive subsurface is observed in the central and south‐western parts of the main grid with a resistivity of less than 500 Ωm. The conductive materials in the south‐western part are limited to shallow surface. In the central part the elevated conductivity region extends to more than 300 m in depth and constitutes an elongated anomalous area with a NNW‐SSE orientation. The north‐westernmost part of the main grid displays a surface conductivity feature associates with the river and river bed. Beneath this surface conductivity feature an eastward dipping moderate conductivity anomaly with a resistivity of ~1500 Ωm is observed along the survey lines. The moderate conductivity structure extends to more than 500 m in depth in the central part of the survey lines and appears to partially arise back to the surface in the eastern part of the profile. In the northern grid a background resistivity of ~2000 Ωm is observed along the survey lines. An eastward dipping conductive structure with resistivity as low as 500 Ωm is observed in this area. The conductive structure crops out in the western part of the northern grid and dips to more than 500 m in depth in the central and eastern parts. The south‐western and central parts of the main grid display elevated chargeability regions with chargeability of more than 30 mrads. Elevated


chargeability zones appear to extend to the northwest part of the main grid along the lines surveyed in the phase III of the Schaft Creek project. In this area the elevated chargeability zones illustrate chargeability as high as 15 mrads. In the northern grid a background subsurface chargeability of ~7 mrads is observed. Within this background slightly elevated chargeability areas with chargeability of ~11 mrads are observed in the western part of the northern grid. A total of 31 potential targets with different priority levels have been resolved along the survey lines surveyed in phase III of the Schaft Creek project. The potential targets are prioritized as High, Moderate, or Low, and their intermediate ranges based on the category of the chargeability and conductivity of the anomalies as well as the size.

9.4.4 OVERALL SI GNIF IC ANT RESU LT S

In order to better interpret the geophysical responses obtained by the surveys, lithologies, sulphide content and metal grades obtained from the diamond drilling were examined, wherever such data was available. From this, main results of the survey are as follows (press release October 17, 2011):

• A previously unknown chargeability anomaly exists west of the Liard Zone.

• The chargeability anomaly in the Paramount Zone has been extended 1,800 m to the north, and has a width of 400 to 1,000 m.

• The chargeability anomaly in the Mike Zone has been extended 600 m to the north and has a width between 500 to 600 m.

• The chargeability anomalies in the Mike Zone and the Paramount Zone appear to define a circular feature with a zero chargeability core, suggesting the central portion of a porphyry system.

• The ES Zone contains two moderate chargeability anomalies, one of which corresponds to the mineralized zone outlined on surface.

• Only the western portion of the GK Zone could be surveyed due to terrain issues. A 1,000 m long by 200 m wide weak chargeability anomaly has been detected along the western side of the mineralized zone exposed on surface.

Results of the surveys are shown graphically in Figure 9.1 to Figure 9.3.


Figure 9.1 Results of Titan Survey – Schaft Creek Geophysical Model

Source: www.copperfoxmetals.com

Figure 9.2 Results of Titan Survey – Schaft Creek 3D Chargeability Model (25 MRADS)





Figure 9.3 Results of the Quantec Titan 24 IP and MT Survey, with Chargeability Anomalies Outlined

Source: Copper Fox


A brief discussion on the IP anomalies is described below (press release October 17, 2011).

Paramount Zone

The survey has extended this strong chargeability anomaly (with corresponding resistivity low) a distance of 1,800m to the north of the current drilling. This chargeability anomaly in conjunction with the chargeability anomaly identified on the Mike Zone defines an interpreted circular feature that coincides with a large circular shaped resistivity low. The south side of this circular feature corresponds to the higher-grade zone of copper-gold-molybdenum-silver mineralization intersected by the drilling completed in 2010 and 2011. The northern side of this anomaly has not been tested by diamond drilling. This chargeability anomaly shows excellent correlation with the zone of argillic alteration within the Shaft Creek Mineral Trend.

Mike Zone

This strong chargeability anomaly appears to be a separate anomaly that defines the northeast portion of the interpreted circular feature noted above. It appears that this feature is cut by several north-south oriented faults that exhibit a good correlation with the 20km long magnetic feature defined by the airborne magnetic survey completed in early 2011. This chargeability target appears to be truncated by a strong northwest trending interpreted fault.

ES Zone

Two moderate chargeability anomalies have been located on this zone. The centre of the chargeability anomaly (with moderate resistivity) that correlates with the mineralized zone outlined on surface exhibits a distinct low chargeability over a distance of approximately 300m, possibly due to an interpreted northwest trending fault zone. The second anomaly (with associated moderate-strong resistivity) is located to the west of the mineralized zone and is interpreted to be the extension of the chargeability anomaly defined on the Paramount zone. The chargeability signature is accompanied by a moderate to strong resistivity signature possibly due to alteration.

GK Zone

Only a limited portion of this zone was surveyed by the Titan-24 system. A broad zone (800m wide) of weak to sometime moderate chargeability (associated with a mixed low-moderate resistivity) was located at the interpreted southwest extension of the GK zone. The limited nature of the survey makes a thorough interpretation of this zone difficult. Additional surveying of this zone will be required to provide a better interpretation and significance of the chargeability anomaly and the mineralized outcrop on surface.


9 . 5 A I R B O R N E M A G N E T I C S U R V E Y , 2 0 1 1 A N D 2 0 1 2

9.5.1 PHASE I , 2011

Precision GeoSurveys Inc. (Precision GeoSurveys) of Vancouver, BC, was retained by Copper Fox to conduct a high-resolution aeromagnetic survey over the Property area. The purpose of the survey was to identify the magnetic signature of the Schaft Creek deposit, and to use this signature in the identification of other potential mineralized zones within the interpreted Schaft Creek mineral trend. The survey was performed between May 4 and June 2, 2011, at 200 m-spaced flight lines at an average altitude of 39 m above ground and tie lines were spaced at 2 km intervals. A total of 2,520 line kilometres (including tie-lines) were completed, covering an area 25 km long by 17 km wide. The magnetic data were collected using a Scintrex cesium vapour CS-3 magnetometer, a high sensitivity/low noise magnetometer. The magnetometer and the base station used in the survey had absolute accuracy ranges of 0.1 nT (gamma) and a sensitivity of 0.1 nT (gamma) at a two-second sampling rate. A potential area of exploration interest was identified from the preliminary interpretation of the total field magnetic data (TF) and the calculated vertical gradient (CVG) magnetic data. The area of exploration interest is an elliptical shaped zone, approximately 4 km wide and 20 km long. It is bounded on both sides by narrow, linear, positive TF and CVG magnetic signatures, which are interpreted to be regional scale faults. The survey also identified three distinct positive magnetic signatures that correlate with the Schaft Creek deposit; the ES and GK Zones of copper mineralization, and the Mike chargeability anomaly. The airborne magnetic signature over the Schaft Creek deposit correlates well with the Quantec Titan-24 DCIP and MT survey results and suggests that the Schaft Creek deposit could extend for an additional 1,000 m to the south. Results are illustrated in Figure 9.4, and the reader is referred to Poon (2011) for further survey details.


Figure 9.4 Airborne Geophysical Survey – Total Magnetic Intensity Map




9 .5.2 PHASE I I , 2012

A follow-up survey to the 2011 helicopter-borne magnetic field survey was completed by Precision GeoSurveys in May 2012. The purpose of Phase II was to extend the limits to the north and south of the area covered in Phase I. A total of 2,514 line kilometres were flown with 200 m line spacings. Results were still pending at the time of preparing this report.

9 . 6 R E - L O G G I N G A N D S A M P L I N G O F H I S T O R I C C O R E , C A M B R I A 2 0 1 1

Cambria was retained by Copper Fox to manage the 2011 diamond drilling exploration program and historical core re-sampling and re-logging program. Between and August and November of 2011, select holes and intervals of historic drill core were re-logged to test and formulate a consistent geological and structural interpretation, to provide input for the construction of a 3D model, and to provide a robust framework for future work. Additional purposes to this endeavour were to confirm or revise the descriptions for lithologies, alteration and structures (Caron et al. 2012). During this program, the rejects of 5359 historic samples were re-assayed at Acme Analytical Laboratories Ltd. (AcmeLabs) in Vancouver, BC.

As discussed in Caron et al. (2012), main results of the program were as follows;

• A strong sodic feldspathization overprint is present at Schaft Creek, resulting in widespread albite to oligoclase replacement of pre-existing feldspars, ranging from rims of sodic feldspar to complete replacement. The sodic alteration has two significant impacts at Schaft Creek. Firstly, primary and secondary potassium feldspars have been almost completely altered to sodic feldspar, so relatively little potassium feldspar remains to respond to sodium cobaltinitrite staining. Light pink colouration in feldspars that has been routinely logged as potassium feldspar in previous work appears to be almost exclusively sodic feldspar, with minor red hematite providing the pink colouration. Secondly, most of the gently dipping porphyritic units that previous workers considered to be intrusives are found to be volcanic or sub-volcanic porphyritic feldspar phyric flows with sodic feldspar overprints. Sodic feldspar overprints in these units range from rimming of the plagioclase phenocrysts to complete phenocrysts replacement and concomitant replacement of much of the generally aphanitic volcanic groundmass with holocrystalline sodic feldspars. Where sodic feldspathization is more advanced, these units are often texturally very similar to certain intrusives. However, it is generally possible to determine that these units are altered volcanics rather than intrusives since the degree of alteration is often quite variable and original volcanic textures can be discerned when moving away from the most highly altered zones. Additionally, these units do not contain visible quartz as either quartz eyes or as crystalline quartz in the groundmass.


• A strong potassic alteration overprint is seen in the breccias of the Paramount Zone. This alteration is part of an early alteration event and consists of fine-grained biotite hornfels developed in andesitic volcanics where they are proximal to intrusive bodies such as dikes. These hornfels often show evidence of subsequent hydrothermal fracturing and incorporation into polylithic breccias. Subsequent near universal propylitic alteration of biotite to chlorite makes the primary biotite hornfels somewhat difficult to recognize, but the hornfels texture is quite distinctive and generally survives later hydrothermal and structural activity.

• Some structural observations were made while re-logging historic core. These observations were incorporated into the structural analysis that is discussed briefly in the Structure section above, as well as in more detail in Appendix A. The primary conclusions of this analysis are that the main structural controls at Schaft Creek are three fault sets and the structurally controlled hydrothermal breccia. One fault set trends northwest and dips steeply toward the east; another set is sub-horizontal, dipping gently to the north; and a third set trends to the northeast and dips at ~45° to the northwest. The northwest-trending fault set and the sub-horizontal fault set are cut by the northeast-trending fault set. The northeast-trending fault set also cuts the mineralized hydrothermal breccia, which trends north-south and dips steeply to the east. Faulting appears to play a significant role in controlling mineralization, as many mineralized structures follow the major trends defined by the fault structures.

9 . 7 L I T H O G E O C H E M I C A L S T U D Y , C A M B R I A 2 0 1 1

In 2011, Cambria completed a preliminary geochemical study with the intention to refine the stratigraphy and to investigate the chemical variability within the deposit. The study utilized 185 samples collected specifically for whole rock geochemical analysis and approximately 12,000 assay samples. Samples had been analyzed by lead (Pb)-fire assay, inductively coupled plasma-mass spectrometry (ICP-MS), and inductively coupled plasma-emission spectroscopy (ICP-ES) methods with an open vessel four-acid digestion. Using whole rock geochemical data, a Pearce diagram was generated and ten geochemical units were created (Table 9.2).


Table 9.2 Lithological Grouping from Geochemical Analysis

Geochemical Group Description Included Lithologies

1 Intermediate intrusives

PPFQ, QZMZ, GRDR, ( BRPL, FQP2, INBX, ANXX, ANLP, BRGD, GDXX, GRHI, BRIG, TOBR, ANBX, PPPL, ANDS, FAUL, HVBX, TOIG, ANPF, ANAP, BRIV, ANTF, ANAU, BRVL, ANVC, BRXX, OVER, FQP1, SHER, SDUN, VNBX, CCBX, VEIN)

2 General volcanics

ANLP, ANPF, ANAP, ANDS, ANBX, ANXX, (INBX, ANTF, BRVL, ANAU, ANVC, FAUL, PPFQ, BRPL, OVER,

PPAU, HVBX, QZMZ, FQP2, GRDR, PPPL, GDXX, PVPF, BRIG, SHER, BRIV, MYLN, BRXX, GRHI, CCBX, FQP1, ANPL, TOIG, VNBX,

BRGD, SDUN, TOVL)

3 High Cr, Fe, Mg, Mn, Ca volcanics

PPAU, ANLP, ANBX, ANAP, ANDS, (BRPL, SHER, ANXX, ANTF,

ANAU, ANPF, INBX, TOBR, BRGD, QZMZ, GRDR, GDXX)

4 Low Nb volcanics

ANLP, ANDS, (BRPL, ANXX, ANTF, ANBX, INBX, ANAU, ANAP,

ANPF, HVBX, SHER, BRGD, TOBR, FAUL, PPFQ, GRHI)

5 FQP1 – Quartz feldspar porphyry FQP1, (GDXX, PPFQ, FQP2) 6 Mafic dikes BSDI, DYKE, DIKE, GABB, (ANDS) 7 Mafic volcanics, dikes PERD, GABB, ANTF, ANLP, (BSDI) 8 Mafic volcanics, dikes GABB, BSDI, (ANTF, ANAP) 9 Diorite DIOR 10 Sediments LMST, SDSS, few miscellaneous

Notes: Cr = chromium; Fe = iron; Mg = magnesium; Ca = calcium; Nb = niobium. The lithologic codes used in this study were the ones used by geologists prior to 2010, and have subsequently been revised.

The Pearce diagram illustrated that the majority of the volcanic units were of sub-alkaline basaltic composition and that some of the volcanics gradually evolved toward a basaltic andesite composition. The majority of the felsic intrusives were likely derived from an intermediate rather than an evolved felsic magma. Mafic intrusives plotted in the more basic part of the diagram. Group 3 volcanics and G7 volcanics appeared to share the same trend and are thought to be possibly coeval. The quartz-bearing plagioclase porphyry dikes (magenta) cluster well in various diagrams, slightly off from all other intermediate dikes. The latter have the same general composition as most of the intermediate intrusives (G1). The breccias do not appear to follow a specific trend, but rather reflect the composition of the brecciated units. In general, the majority of samples from the Paramount Zone breccia fall into the intermediate intrusive category. The common inconsistencies between geochemical grouping classifications and the lithologies from field logging were found


to be a reflection of the difficulty in logging units that have been intensely overprinted by alteration (Caron et al. (2012).

9 . 8 3 D G E O L O G I C A L M O D E L , C A M B R I A 2 0 1 1

Copper Fox retained Cambria to continue their work from 2010, and to assist in the geological interpretation of the Project. All available information was used to construct a 3D geological model for the Project. Wireframes were constructed in Surpac™ software, and were generated for various geological domains including base of overburden, breccia zones, fragmental zones, alteration zones, intrusive units, and fault zones. The model assisted Copper Fox in identifying future targets for definition drilling. It additionally suggested that the coarse fragmental rocks in the Main Zone may be a steeply dipping breccia pipe (Caron et al. 2012).

9 . 9 O T H E R S T U D I E S

Petrography, mineralogical and paragenetic studies in support of mineralogical and geological interpretations as well as geotechnical and hydrological studies have been completed on the Project. The following is an excerpt from Kulla et al. (2011), describing some of the geotechnical and hydrological work that was completed for prefeasibility and feasibility-level studies.

During earlier mining studies on the project, Knight Piésold calculated pit slope design parameters. Information in this subsection on pit slopes is taken from Bender et al. (2008) which is based on the Knight Piésold work. Intact rock strengths were generally found to be strong and the rock mass quality was typically fair to poor. Large-scale structural features across the deposit area were noted to occur as sets of steeply dipping north-south and east-west trending faults. Discontinuities measured on outcrops across the deposit area reflected the major structural trends shown in the fault system.

For the 2008 pre-feasibility study pit design, an inter-ramp slope angle of 45º was recommended for the Southwest and Northwest Sectors where adverse structural features were considered to be less significant. An inter-ramp slope angle of 43º was recommended for the Northeast and Southeast Sectors to reduce the potential for wedge failure in the Northeast wall and toppling failure in the Southeast wall. The resulting overall slope angle for the Northeast and Southeast Walls will be approximately 40º after allowing for cleanout benches. A 44º overall pit slope is appropriate for the remaining walls where the maximum slope height is less significant. The proposed Northeast Wall will reach a maximum slope height of 1,200 m. Baseline hydrological studies have been undertaken and hydrological studies are ongoing. A preliminary water balance model has been completed. Water management structures will be required for water diversion around major infrastructure, such as any tailings storage facility.


1 0 . 0 D R I L L I N G

To date, a total of 410 drillholes, totalling 98,445.82 m, have been drilled into the Property. Of these, 179 holes and 38,879.14 m have been completed by Copper Fox. Drilling conducted by Copper Fox is discussed below, and drilling conducted by other operators is summarized in Section 6.0.

1 0 . 1 2 0 0 5 D R I L L I N G P R O G R A M

Copper Fox drilled 15 holes, totalling 3,158.92 m in 2005 (Table 10.1). Thirteen of the drillholes targeted the Liard Zone and the other two drillholes (05CF234 and 05CF235) targeted the Breccia Zone (Figure 10.1). Drilling was conducted by Hy-Tech Drilling Ltd. (Hy-Tech) during the months of August and September, and all core was of PQ core diameter size.


Table 10.1 Summary of 2005 Drillholes

Drillhole

UTM Coordinates (NAD83, Zone 9)

Length (m)

Start Date

End Date

Azimuth (°)

Dip (°)

Core Size

Target/ Purpose

Easting (m)

Northing (m)

Elevation (masl)

05CF234 379688.29 6359494.87 899.55 168.00 8/11/2005 8/13/2005 270.0 -45.0 PQ Breccia Zone 05CF235 379626.42 6359573.44 889.37 159.50 8/14/2005 8/16/2005 0.0 -90.0 PQ Breccia Zone 05CF236 379948.80 6359567.07 945.40 171.30 8/17/2005 8/19/2005 0.0 -90.0 PQ Main Zone 05CF237 379999.61 6359638.85 957.55 49.10 8/20/2005 8/21/2005 92.6 -59.7 PQ Main Zone 05CF238 379952.31 6359746.23 956.57 78.50 8/21/2005 8/22/2005 0.0 -90.0 PQ Main Zone 05CF239 380297.51 6359406.39 1038.20 214.00 8/23/2005 8/25/2005 0.0 -90.0 PQ Main Zone 05CF240 380349.43 6359176.81 1041.19 146.30 8/26/2005 8/28/2005 82.0 -70.0 PQ Main Zone 05CF241 380315.91 6359478.59 1041.89 244.10 8/28/2005 8/31/2005 0.0 -90.0 PQ Main Zone 05CF242 380315.91 6359478.59 1041.89 305.00 8/31/2005 9/3/2005 270.0 -70.0 PQ Main Zone 05CF243 380314.29 6359554.02 1055.36 274.50 9/12/2005 9/15/2005 0.0 -90.0 PQ Main Zone 05CF244 380320.04 6359644.36 1061.69 304.50 9/9/2005 9/12/2005 90.0 -80.0 PQ Main Zone 05CF245 380406.28 6359554.20 1092.09 107.00 9/8/2005 9/9/2005 0.0 -90.0 PQ Main Zone 05CF246 380452.01 6359621.61 1122.19 305.10 9/4/2005 9/7/2005 90.0 -80.0 PQ Main Zone 05CF247 380229.69 6359772.82 1028.62 290.02 9/16/2005 9/18/2005 90.0 -80.0 PQ Main Zone 05CF248 380143.87 6359764.96 1002.53 342.00 9/19/2005 9/24/2005 90.0 -80.0 PQ Main Zone


Figure 10.1 Plan View Map of 2005 Drillhole Locations


Copper Fox drilled 42 holes, totalling 9,016.00 m in 2006 (Table 10.2). Thirty-five of the drillholes targeted the Liard Zone and the other seven drillholes (06CF253, 06CF283, 06CF286, 06CF287, 06CF288, 06CF289, and 06CF290) targeted the Breccia Zone (Figure 10.2). Drilling was conducted by Hy-Tech between July and October, and core was either of PQ or HQ core diameter size.



Drillhole


Length (m)

Start Date

End Date

Azimuth (°)

Dip (°)

Core Size

Target/ Purpose

Easting (m)

Northing (m)

Elevation (masl)

06CF249 379632.94 6359945.49 900.97 153.00 7/11/2006 7/13/2006 90 -55 PQ Main Zone 06CF250 379724.14 6359936.37 908.57 86.00 7/14/2006 7/15/2006 90 -55 PQ Main Zone 06CF251 379930.41 6359792.04 951.56 102.00 7/22/2006 7/25/2006 0 -90 PQ Main Zone 06CF252 379745.04 6359872.73 907.53 78.00 7/15/2006 7/16/2006 0 -90 PQ Main Zone 06CF253 379579.67 6359627.48 883.01 116.00 7/10/2006 7/11/2006 0 -90 PQ Breccia Zone 06CF254 379793.38 6359648.84 916.41 107.00 7/16/2006 7/17/2006 0 -90 PQ Main Zone 06CF255 380143.87 6359764.96 1,002.53 303.00 7/26/2006 8/1/2006 90 -69 PQ Main Zone 06CF256 380263.66 6359700.02 1,037.35 303.00 8/11/2006 8/14/2006 0 -90 PQ Main Zone 06CF257 380249.86 6359634.89 1,028.61 276.00 8/5/2006 8/8/2006 0 -90 PQ Main Zone 06CF258 380194.37 6359466.91 1,001.53 243.00 8/1/2006 8/4/2006 100 -65 PQ Main Zone 06CF259 380420.12 6359860.20 1,128.19 312.00 9/14/2006 9/19/2006 0 -90 PQ Main Zone 06CF260 380322.45 6360081.38 1,137.42 168.00 9/19/2006 9/21/2006 0 -90 PQ Main Zone 06CF261 380603.60 6359635.29 1,162.44 210.00 9/21/2006 9/25/2006 270 -65 PQ Main Zone 06CF262 380528.39 6359464.64 1,124.31 225.00 9/26/2006 9/30/2006 270 -75 PQ Main Zone 06CF263 380315.67 6359557.31 1,051.78 213.00 10/14/2006 10/16/2006 90 -45 HQ Main Zone 06CF264 380315.67 6359557.31 1,051.78 270.00 10/10/2006 10/14/2006 90 -65 PQ Main Zone 06CF265 380315.67 6359557.31 1,051.78 255.00 10/16/2006 10/20/2006 270 -60 PQ Main Zone 06CF266 380406.28 6359554.20 1,092.09 123.00 9/22/2006 9/24/2006 90 -60 HQ Main Zone 06CF267 380406.28 6359554.20 1,092.09 90.00 9/24/2006 9/25/2006 270 -60 HQ Main Zone 06CF268 380452.01 6359621.61 1,122.19 213.00 9/30/2006 10/4/2006 270 -75 PQ Main Zone 06CF269 380312.46 6359472.67 1,036.75 201.00 10/4/2006 10/9/2006 90 -50 PQ Main Zone 06CF270 380334.43 6359242.08 1,038.15 228.00 10/14/2006 10/18/2006 270 -60 HQ Main Zone 06CF271 380334.43 6359242.08 1,038.15 216.70 10/19/2006 10/23/2006 90 -60 HQ Main Zone

table continues…


Drillhole


Length (m)

Start Date

End Date

Azimuth (°)

Dip (°)

Core Size

Target/ Purpose

Easting (m)

Northing (m)

Elevation (masl)

06CF272 380229.69 6359772.82 1,028.62 303.00 9/29/2006 10/1/2006 45 -60 HQ Main Zone 06CF273 380229.69 6359772.82 1,028.62 303.00 9/25/2006 9/28/2006 45 -80 HQ Main Zone 06CF274 380186.94 6359725.13 1,007.65 303.00 10/2/2006 10/5/2006 90 -60 HQ Main Zone 06CF275 380186.94 6359725.13 1,007.65 336.00 10/5/2006 10/11/2006 270 -60 HQ Main Zone 06CF276 380003.98 6359791.89 971.55 351.00 10/11/2006 10/14/2006 90 -60 HQ Main Zone 06CF277 380003.98 6359791.89 971.55 336.00 10/14/2006 10/17/2006 270 -60 HQ Main Zone 06CF278 379957.00 6359514.52 946.76 153.10 10/10/2006 10/13/2006 0 -90 HQ Main Zone 06CF279 379826.66 6359476.35 921.85 168.20 10/6/2006 10/10/2006 270 -60 HQ Main Zone 06CF280 379811.16 6359508.23 918.87 184.50 10/4/2006 10/6/2006 0 -90 HQ Main Zone 06CF281 379748.02 6359417.10 910.22 168.00 10/1/2006 10/4/2006 0 -90 HQ Main Zone 06CF282 379694.87 6359652.26 899.62 120.00 9/29/2006 9/30/2006 0 -90 HQ Main Zone 06CF283 379570.13 6359670.95 881.72 120.00 9/26/2006 9/28/2006 0 -90 HQ Breccia Zone 06CF284 379999.61 6359638.85 957.55 274.50 7/17/2006 7/21/2006 90 -80 PQ Main Zone 06CF285 380249.86 6359634.89 1,028.61 291.00 8/8/2006 8/11/2006 90 -70 PQ Main Zone 06CF286 379450.09 6360878.47 960.34 213.00 9/2/2006 9/6/2006 0 -90 PQ Breccia Zone 06CF287 379450.09 6360878.47 960.34 243.00 9/6/2006 9/10/2006 90 -60 PQ Breccia Zone 06CF288 379308.40 6360888.42 929.64 183.00 8/29/2006 9/1/2006 0 -90 PQ/HQ Breccia Zone 06CF289 379320.18 6361049.30 958.40 183.00 9/11/2006 9/14/2006 0 -90 PQ Breccia Zone 06CF290 379538.90 6361180.77 1,052.35 291.00 8/14/2006 8/29/2006 90 -70 PQ Breccia Zone



Drilling highlights for various drillholes are as follows (press release December 19, 2006):

• 06CF260: twinned historic drillhole T81CH194, 27.5 m grading 0.64% copper and 0.29 g/t gold starting at 24.4 m

• 06CF261: twinned historic drillhole H68CH032, 183.0 m grading 0.30% copper and 0.17 g/t gold over 9.2 m


• 06CF264: drilled from same platform as 06CF243 but at a steeper angle, 9.2 m grading 0.54% copper and 0.51% copper at 137.3 m and 219.6 m, respectively

• 06CF268: twinned historic drillhole DDHSS-02, 12.2 m grading 0.77% copper and 0.26 g/t gold starting at 149.5 m

• 06CF269: twinned historic drillhole H71CH086, confirmed and improved slightly on the historic assays, 9.2 m grading 0.55% copper and 0.53 g/t gold at 18.3 m

• 06CF274: 18.3 m grading 0.43% copper and 1.05 g/t gold at 125.1 m

• 06CF275: drilled at the same site as historic drillhole T81CH155 but angled to the west, copper results were comparable with the previous hole but gold values were higher (0.34 g/t versus 0.19 g/t) over the length of the hole.


Copper Fox drilled 42 holes, totalling 6,303.55 m in 2007 (Table 10.3). Thirty-two of the holes were completed to condemn the sites selected as potential waste disposal areas near the deposit. One of the drillholes indicated that mineralization extended for approximately 400 m further south of the West Breccia, and three drillholes, with narrow copper, molybdenum and gold intercepts were noted away from the deposit toward a swampy area in the south. Six holes (07CF301, 07CF303, 07CF309, 07CF312, 07CF313, 07CF319) of the 42 holes drilled in 2007 targeted the Liard Zone and the other four targeted the Breccia Zone (07CF304, 07CF315, 07CF320A, 07CD320B) (Figure 10.3). Drilling was conducted by Lyncorp Drilling Services (Lyncorp Drilling) between July and October, and core was generally HQ in diameter, and reduced to NQ diameter wherever necessary. Additionally, holes 07AND01, 07AND02, 07AND03, 07ANWD01, 07ASD01, 07ASD02, 07ASD03, 07BD01, 07BD02, 07BD03, 07CD01, 07CF306, 07CF308, 07CF309, 07CF312, 07CF313, 07CF314, 07CF315, and 07CF316 were completed for either open pit oriented core drilling or tailings damn hydrological studies. Select assay highlights are shown in Table 10.4.



Drillhole


Length (m)

Start Date

End Date

Azimuth (°)

Dip (°)

Core Size

Target/ Purpose

Easting (m)

Northing (m)

Elevation (masl)

07AND01 382113.23 6374504.54 817.65 138.73 8/9/2007 8/22/2007 0.0 -90.0 NQ Condemnation 07AND02 381879.96 6374520.40 795.61 125.00 9/8/2007 9/18/2007 0.0 -90.0 NQ Condemnation 07AND03 381510.33 6374504.18 814.49 101.80 8/24/2007 8/31/2007 0.0 -90.0 NQ Condemnation

07ANWD01 380427.64 6373157.72 857.89 113.80 8/27/2007 9/16/2007 0.0 -90.0 NQ Condemnation 07ASD01 382864.39 6367242.74 878.03 120.45 7/23/2007 8/8/2007 0.0 -90.0 NQ Condemnation 07ASD02 382607.00 6367256.00 896.00 101.30 7/27/2007 8/2/2007 0.0 -90.0 NQ Condemnation 07ASD03 382334.00 6367269.00 891.00 92.70 8/3/2007 8/24/2007 0.0 -90.0 NQ Condemnation 07BD01 378851.95 6355604.62 948.57 107.62 9/19/2007 9/21/2007 0.0 -90.0 NQ Condemnation 07BD02 378591.14 6355627.15 975.23 105.50 10/5/2007 10/8/2007 0.0 -90.0 HQ Condemnation 07BD03 378300.00 6355600.00 960.00 117.70 10/9/2007 10/14/2007 0.0 -90.0 HQ Condemnation 07CD01 374591.38 6368214.02 847.23 135.03 9/27/2007 10/10/2007 0.0 -90.0 HQ/NQ Condemnation 07CF291 378878.79 6358999.90 856.13 122.50 6/5/2007 6/12/2007 0.0 -90.0 HQ Condemnation 07CF292 378721.63 6359893.30 845.06 136.90 6/10/2007 6/15/2007 0.0 -90.0 HQ/NQ Condemnation 07CF293 378561.22 6360407.36 840.08 125.00 6/12/2007 6/23/2007 0.0 -90.0 HQ Condemnation 07CF294 378761.77 6359387.58 850.66 151.35 6/14/2007 6/29/2007 0.0 -90.0 NQ Condemnation 07CF295 379100.24 6359994.87 857.80 120.00 - - 0.0 -90.0 HQ Condemnation 07CF296 379391.18 6360055.60 879.13 183.40 6/28/2007 7/3/2007 0.0 -90.0 HQ Condemnation 07CF297 378749.64 6359597.91 847.22 156.20 6/30/2007 7/9/2007 0.0 -90.0 HQ/NQ Condemnation 07CF298 378938.44 6360724.48 845.83 153.40 7/5/2007 7/24/2007 0.0 -90.0 HQ Condemnation 07CF299 378835.43 6358849.68 858.48 110.34 7/7/2007 7/12/2007 0.0 -90.0 HQ Condemnation 07CF300 378814.08 6359195.01 853.12 119.20 7/11/2007 7/16/2007 0.0 -90.0 HQ Condemnation 07CF301 380023.04 6358952.45 956.72 192.72 7/12/2007 7/17/2007 0.0 -90.0 HQ Main Zone 07CF302 378682.22 6359789.41 846.20 149.10 7/16/2007 7/24/2007 0.0 -90.0 NQ Condemnation

table continues…


Drillhole


Length (m)

Start Date

End Date

Azimuth (°)

Dip (°)

Core Size

Target/ Purpose

Easting (m)

Northing (m)

Elevation (masl)

07CF303 379626.03 6358832.13 929.19 138.00 7/17/2007 7/19/2007 0.0 -90.0 HQ Main Zone 07CF304 379651.50 6359397.54 898.15 139.90 7/19/2007 7/22/2007 0.0 -90.0 HQ Breccia Zone 07CF305 378654.98 6360214.98 841.94 129.60 7/24/2007 7/30/2007 0.0 -90.0 NQ Condemnation 07CF306 379090.12 6358930.91 882.12 128.04 7/24/2007 7/31/2007 197.0 -60.0 HQ Condemnation 07CF307 378634.34 6360603.47 838.15 136.60 7/31/2007 8/4/2007 0.0 -90.0 HQ/NQ Condemnation 07CF308 379629.51 6358831.08 929.29 104.90 7/31/2007 8/3/2007 144.5 -60.0 HQ Condemnation 07CF309 380026.67 6358954.04 957.20 111.80 8/3/2007 8/6/2007 168.3 -60.0 HQ Main Zone 07CF310 378853.30 6359919.06 844.01 150.30 8/4/2007 8/6/2007 150.3 -90.0 HQ Condemnation 07CF311 379106.73 6360880.56 884.42 200.61 8/6/2007 8/10/2007 0.0 -90.0 HQ Condemnation 07CF312 380609.79 6359782.56 1,171.38 157.00 8/6/2007 8/11/2007 67.0 -60.0 HQ Main Zone 07CF313 380276.72 6360182.03 1,156.85 421.84 8/11/2007 8/27/2007 90.0 -60.0 HQ/NQ Main Zone 07CF314 379993.38 6360579.81 1,089.50 256.70 8/30/2007 9/26/2007 53.9 -60.0 HQ/NQ Condemnation 07CF315 379700.70 6361031.39 1,084.57 149.90 - - 62.0 -56.5 HQ/NQ Breccia Zone 07CF316 380451.00 6360568.00 1,373.00 636.12 8/31/2007 10/14/2007 0.0 -90.0 HQ/NQ Condemnation 07CF317 378641.43 6358304.43 869.25 122.00 9/21/2007 10/2/2007 0.0 -90.0 HQ Condemnation 07CF318 382388.00 6360067.00 1,085.00 107.00 10/7/2007 10/10/2007 0.0 -90.0 HQ Condemnation 07CF319 379704.74 6360509.76 962.98 167.10 10/11/2007 10/16/2007 255.5 -88.5 HQ Main Zone

07CF320A 379805.45 6360399.81 978.31 36.30 10/17/2007 10/22/2007 0.0 -90.0 HQ Breccia Zone 07CF320B 379805.45 6360399.81 978.31 30.10 10/17/2007 10/22/2007 0.0 -90.0 HQ Breccia Zone


Table 10.4 Highlights of 2007 Assay Results

Drillhole From (m)

To (m)

Length (m)

Cu (%)

Au (g/t)

Mo (g/t)

Ag (g/t) Source

07CF313 62.80 110.00 47.20 0.506 0.241 0.016 0.30 Press release June 26, 2008

Note: Drill intercepts do not represent true widths. True widths are shorter intervals that are dependent upon the dip of the drillhole.


Copper Fox drilled 47 holes, totalling 6,816.05 m in 2008 (Table 10.5). Thirty of the holes were for the purpose of condemnation drilling in the proposed open pit, plant site, waste dump and north and south dam areas. Ten holes target the Liard Zone and the other seven targeted the Breccia Zone (Figure 10.4). Drilling was conducted by Lyncorp Drilling and Geotech Drilling Services Ltd. (Geotech Drilling) between June and September. Core was generally HQ in diameter, and reduced to NQ diameter wherever necessary. Additionally, holes 08CF328, 08CF329, 08CF333, 08CF335, 08CF338, and 08CF339 were drilled for geotechnical purposes, and holes 08CF330A, 08CF332A, and 08CF337A were drilled for hydrogeological studies (press release October 23, 2008). Select assay highlights are provided in Table 10.6.



Drillhole


Length (m)

Start Date

End Date

Azimuth (°)

Dip (°)

Core Size

Target/ Purpose

Drilling Contractor

Easting (m)

Northing (m)

Elevation (masl)

08CF321 379805.45 6360399.81 978.31 335.90 - - 0 -90 HQ Main Zone Lyncorp Drilling 08CF322 379359.74 6359101.95 888.45 136.25 6/2/2008 6/16/2008 0 -90 HQ Condemnation Lyncorp Drilling 08CF323 379619.14 6358974.91 921.32 139.30 6/18/2008 6/22/2008 0 -90 HQ Condemnation Lyncorp Drilling 08CF324 379460.94 6359284.14 884.32 154.53 6/16/2008 6/18/2008 0 -90 HQ Condemnation Lyncorp Drilling 08CF325 379576.15 6359331.37 892.93 145.40 6/18/2008 6/19/2008 0 -90 HQ Main Zone Lyncorp Drilling 08CF326 379671.56 6359516.64 896.16 182.90 6/19/2008 6/21/2008 0 -90 HQ Breccia Zone Lyncorp Drilling 08CF327 379820.00 6359000.00 941.00 136.24 6/23/2008 7/9/2008 0 -90 HQ Main Zone Lyncorp Drilling 08CF328 379823.24 6360466.91 991.98 285.90 7/2/2008 7/14/2008 65 -60 HQ Breccia Zone Lyncorp Drilling 08CF329 380329.00 6359252.00 1,048.00 271.73 7/9/2008 7/16/2008 120 -65 HQ Main Zone Lyncorp Drilling 08CF330A 378644.65 6360095.46 842.99 117.40 7/2/2008 7/6/2008 0 -90 HQ Condemnation Geotech Drilling 08CF332A 378682.50 6358508.59 864.56 99.40 6/16/2008 6/21/2008 0 -90 HQ Condemnation Geotech Drilling 08CF333 379460.06 6358188.91 946.83 150.60 7/7/2008 7/11/2008 0 -90 HQ Condemnation Geotech Drilling 08CF335 379936.35 6357930.04 997.96 72.24 7/11/2008 7/14/2008 125 -70 HQ Condemnation Geotech Drilling 08CF337A 380200.35 6358424.32 1,028.07 60.10 7/17/2008 7/21/2008 0 -90 HQ Condemnation Geotech Drilling 08CF338 379574.07 6360367.49 920.48 245.40 7/14/2008 7/23/2008 240 -60 HQ Breccia Zone Lyncorp Drilling 08CF339 379900.10 6359590.01 938.34 199.34 - - 221 -62 HQ Main Zone Lyncorp Drilling 08CF340A 379718.29 6359939.96 908.10 50.30 7/30/2008 7/31/2008 0 -90 HQ Main Zone Geotech Drilling 08CF341 380282.30 6360244.35 1,178.29 542.40 7/22/2008 8/16/2008 63 -65 HQ Main Zone Lyncorp Drilling 08CF342 379479.88 6360998.31 994.16 223.72 - - 327 -61 HQ Breccia Zone Lyncorp Drilling 08CF344 379773.15 6361268.48 1,196.19 250.20 8/1/2008 8/19/2008 35 -65 HQ Condemnation Lyncorp Drilling 08CF345 379853.51 6361019.84 1,157.20 101.20 8/21/2008 8/27/2008 65 -70 HQ Condemnation Lyncorp Drilling 08CF346 380353.20 6359646.90 1,075.50 299.20 8/21/2008 8/28/2008 90 -65 HQ Main Zone Lyncorp Drilling 08CF347 380000.00 6359808.00 980.00 463.60 8/28/2008 9/8/2008 65 -65 HQ Main Zone Lyncorp Drilling

table continues…


Drillhole


Length (m)

Start Date

End Date

Azimuth (°)

Dip (°)

Core Size

Target/ Purpose

Drilling Contractor

Easting (m)

Northing (m)

Elevation (masl)

08CF348 379329.00 6361257.00 1,025.00 160.93 8/4/2008 9/1/2008 0 -90 HQ Main Zone Lyncorp Drilling 08CF351 379530.00 6360941.00 1,005.00 316.70 9/9/2008 9/13/2008 0 -90 HQ Breccia Zone Lyncorp Drilling 08CF363 379445.35 6359903.48 876.19 62.48 8/1/2008 8/3/2008 0 -90 HQ Condemnation Geotech Drilling 08CF364 379040.65 6360802.73 865.37 55.50 8/3/2008 8/5/2008 0 -90 HQ Condemnation Geotech Drilling 08CF366 379358.30 6360939.80 951.10 273.71 9/9/2008 9/13/2008 0 -90 HQ Breccia Zone Lyncorp Drilling 08CF369 379446.00 6360941.00 978.00 334.70 9/1/2008 9/9/2008 0 -90 HQ Breccia Zone Lyncorp Drilling 08CF373 382166.72 6366806.35 881.63 59.74 8/6/2008 8/9/2008 0 -90 HQ Condemnation Geotech Drilling 08CF374A 382038.89 6367156.89 892.43 54.60 8/14/2008 8/14/2008 0 -90 HQ/NQ Condemnation Geotech Drilling 08CF374B 382038.99 6367154.20 892.66 67.40 8/12/2008 8/13/2008 0 -90 NQ Condemnation Geotech Drilling 08CF375 382203.63 6367183.58 907.60 92.70 8/29/2008 8/30/2008 270 -70 HQ Condemnation Geotech Drilling 08CF376 382670.12 6367191.02 891.23 30.50 8/14/2008 8/25/2008 0 -90 HQ Condemnation Geotech Drilling 08CF377 382819.26 6366777.59 886.34 39.93 8/25/2008 8/27/2008 0 -90 HQ Condemnation Geotech Drilling 08CF378 382866.56 6367177.53 884.71 29.00 8/28/2008 8/29/2008 0 -90 HQ Condemnation Geotech Drilling 08CF379 382266.00 6367822.30 893.30 70.41 9/1/2008 9/2/2008 270 -65 HQ Condemnation Geotech Drilling 08CF380 382130.00 6374065.00 827.00 59.74 9/18/2008 9/20/2008 0 -90 HQ Condemnation Geotech Drilling 08CF381 381687.00 6374151.00 790.00 44.20 9/13/2008 9/15/2008 0 -90 HQ Condemnation Geotech Drilling 08CF382 381401.00 6374189.00 825.00 47.03 9/3/2008 9/4/2008 0 -90 NQ Condemnation Geotech Drilling 08CF383A 381703.00 6374922.00 790.00 63.10 9/16/2008 9/17/2008 0 -90 HQ Condemnation Geotech Drilling 08CF384 380399.00 6373199.00 870.00 48.20 9/6/2008 9/10/2008 0 -90 HQ Condemnation Geotech Drilling 08CF385 380338.00 6372971.00 880.00 67.10 9/5/2008 9/6/2008 0 -90 HQ Condemnation Geotech Drilling 08CF386A 379996.00 6373323.00 834.00 59.89 9/11/2008 9/13/2008 0 -90 HQ Condemnation Geotech Drilling 08CF387 381404.00 6360056.00 1,148.00 25.91 9/23/2008 9/24/2008 0 -90 NQ Condemnation Geotech Drilling 08CF388 381546.00 6360640.00 1,137.00 27.43 9/24/2008 9/26/2008 0 -90 HQ Condemnation Geotech Drilling 08CF389 381771.00 6359940.00 1,142.00 61.90 9/20/2008 9/23/2008 0 -90 NQ Condemnation Geotech Drilling



Drillhole From (m)

To (m)

Length (m)

Cu (%)

Au (g/t)

Mo (g/t)

Ag (g/t) Source

08CF321 280.60 292.80 12.20 1.149 0.003 0.0030 5.925 Press release October 23, 2008 08CF326 24.40 39.65 15.25 0.609 0.684 0.0042 5.900 Press release October 23, 2008 08CF326 94.55 158.60 64.05 0.286 0.080 0.0180 3.414 Press release October 23, 2008 08CF326 30.50 33.55 3.05 1.301 2.820 0.0360 9.500 Press release October 23, 2008 08CF329 12.20 106.75 94.55 0.439 0.165 0.0240 0.848 Press release October 23, 2008 08CF339 10.60 73.20 62.60 0.423 0.215 0.0150 n/a Press release October 23, 2008



Copper Fox drilled 11 holes, totalling 3,935.95 m in 2010 (Table 10.7). Nine holes targeted the Breccia Zone and the other two (2011CF403 and 2011CF404) targeted the Liard Zone (Figure 10.5). Drilling was conducted by Geotech Drilling of Prince George, BC, and Cabo Drilling Corp. (Cabo Drilling) of Vancouver, BC, between August and December. Core was either HQ or NQ in core size diameter. Select assay results are provided in Table 10.8.



Drillhole


Length (m)

Start Date

End Date

Azimuth (°)

Dip (°)

Core Size

Target/ Purpose

Drilling Contractor

Easting (m)

Northing (m)

Elevation (masl)

2010CF397 379750.00 6361012.00 1,097.00 91.40 8/6/2010 8/20/2010 65 -80 HQ Breccia Zone Cabo Drilling 2010CF398 379297.00 6360904.00 936.00 539.19 8/21/2010 9/9/2010 90 -55 HQ Breccia Zone Cabo Drilling 2010CF399 379413.00 6360654.00 921.00 517.30 9/10/2010 9/25/2010 90 -67 HQ Breccia Zone Cabo Drilling 2010CF400 379860.00 6361011.00 1,172.00 243.54 10/11/2010 10/25/2010 0 -90 HQ Breccia Zone Geotech Drilling 2010CF401 379414.10 6360801.24 934.96 495.90 10/4/2010 10/24/2010 90 -55 HQ/NQ Breccia Zone Cabo Drilling 2010CF402 379316.82 6361050.26 958.31 581.25 10/25/2010 11/20/2010 90 -60 NQ Breccia Zone Cabo Drilling 2010CF403 379345.78 6360502.11 895.48 212.45 10/27/2010 10/30/2010 90 -55 NQ Main Zone Geotech Drilling 2010CF404 380026.26 6358544.76 974.50 255.12 11/2/2010 11/9/2010 270 -80 NQ Main Zone Geotech Drilling 2010CF405 379421.42 6360909.76 960.40 151.49 11/9/2010 11/14/2010 90 -58 NQ Breccia Zone Geotech Drilling

2010CF405B 379421.42 6360909.76 960.40 648.31 11/14/2010 12/7/2010 90 -58 NQ Breccia Zone Geotech Drilling 2010CF406 379550.63 6360648.40 943.89 200.00 12/8/2010 12/14/2010 90 -60 HQ/NQ Breccia Zone Geotech Drilling



Drillhole From (m)

To (m)

Length (m)

Cu (%)

Au (g/t)

Mo (g/t)

Ag (g/t) Source

2010CF398 7.10 539.20 532.10 0.42 0.27 0.020 2.00 Press release December 14, 2010 including 7.10 61.40 54.30 0.70 0.42 0.040 2.80 Press release December 14, 2010 including 325.50 539.20 213.70 0.47 0.37 0.020 3.00 Press release December 14, 2010




The holes completed in 2010 intersected higher grade copper-gold-molybdenum-silver mineralization to the east and below the pre-2010 drillholes. The upper portions of the 2010 holes drilled through an area that was previously tested by diamond drilling. Due to the lack of depth, the majority of the pre-2010 holes intersected lower grade mineralization, comparable to the upper portions of the 2010 holes. The average grade of the deeper parts of the 2010 drillholes that extended the mineralization to the east toward Mount LaCasse and at depth into a previously untested area past the pre-2010 drillholes is 0.447% Cu, 0.327 g/t Au, 0.029% Mo and 2.51 g/t Ag. The area included in the extension of the mineralization to the east and at depth is at least 600 m long and varies, from 80 to 200 m in width and from 50 to 330 m in depth (press release February 23, 2011). Drillhole 2010CF398 confirmed the mineralized nature of the chargeability anomaly identified in July 2010. This anomaly and the mineralization remains open at depth.

Furthermore, an additional seven holes, totalling 178 m, and three holes totalling 74 m were drilled for hydrological and geotechnical studies, respectively.


During the 2011 program, 22 diamond drillholes, amounting to 9,648.67 m were completed (Table 10.9). Thirteen holes targeted the Breccia Zone, four holes targeted the Liard Zone, and five holes were completed for the purpose of condemnation drilling (Figure 10.6). The program was supervised and executed by Cambria, with primary guidance regarding approval of drillhole locations and orientations provided by Copper Fox. Drilling activities occurred between May and November and were conducted by two diamond drilling contractors (Caron et al. 2012):

• Tahltan Drilling Services Corporation (TDSC) formed a joint venture with Black Hawk Diamond Drilling Ltd. of Smithers, BC to aid in the drilling supply chain and to provide additional technical expertise. TDSC provided one


helicopter-portable, skid mounted Zinex A5 drill rig and one modified A5 hybrid drill, in addition to all drilling equipment, consumables, supplies, and operators.

• Geotech Drilling of Prince George, BC conducted exploration diamond drilling and geotechnical-related drilling with standard core recovery, as well as oriented core recovery on select drillholes. Geotech Drilling provided a heli-portable, skid-mounted Zinex A5 drill and a Hydracore 2000 drill rig, all necessary supplies, and personnel.

Core was generally HQ in diameter and reduced to NQ and BQ, when necessary. When oriented core was required, HQ3 diameter core was utilized. The main objectives of the 2011 drill program were as follows:

• define deposit geometry in the Paramount Zone to increase confidence to the mineral resource estimate

• increase drillhole density spacing on specific drill sections to test the continuity of grade shells, lithologies, and alteration in the Paramount Zone

• collect geotechnical and hydrological information

• drill select holes using an oriented core recovery system to collect structural data to aid in the understanding of the complex structures and the relationships between mineralized veins

• test geophysical anomalies to the east and to the north of the known deposit area.

The majority of this drilling was in the Paramount Zone area and along the eastern and western margins of this zone (Figure 10.6). The program included logging all drill core (recording lithology, alteration, mineralogy, and structure) and sampling drill core for geochemical assay, lithogeochemistry, specific gravity, and petrography. The 2011 program also included a comprehensive geological review and interpretation of select historical drill core from drillholes dating as far back as the late 1960s. This drill core review recorded observations of lithology, alteration, sulphide content, and structure to fill gaps in the evolving database and geological model. The program initially used two diamond drills; however, challenging ground conditions hampered drilling rates, and in October the program was expanded to include four drill rigs (Caron et al. 2012).



Drillhole


Length (m)

Start Date

End Date

Azimuth (°)

Dip (°)

Core Size

Target/ Purpose

Drilling Contractor

Easting (m)

Northing (m)

Elevation (masl)

2011CF407 379548.82 6360654.33 944.02 735.80 5/26/2011 6/14/2011 95.1 -69.7 HQ/NQ Breccia Zone TDSC 2011CF408 379547.04 6360654.31 944.00 377.04 6/16/2011 6/25/2011 274.1 -59.1 HQ Breccia Zone TDSC 2011CF409 379465.56 6361039.30 995.44 473.66 6/14/2011 7/3/2011 87.1 -62.6 HQ/NQ Breccia Zone Geotech Drilling 2011CF410 379651.00 6360658.00 975.00 41.76 6/26/2011 6/29/2011 90.0 -70.0 HQ Breccia Zone TDSC

2011CF410B 379653.84 6360659.53 975.22 678.79 6/29/2011 7/15/2011 90.8 -69.5 HQ Breccia Zone TDSC 2011CF411 379740.57 6360801.14 1,035.46 745.54 7/4/2011 8/3/2011 272.1 -70.4 HQ/NQ/BQ Breccia Zone Geotech Drilling 2011CF412 379378.00 6360990.00 962.00 63.70 7/16/2011 7/22/2011 90.0 -61.0 HQ Breccia Zone TDSC

2011CF412B 379380.68 6360989.79 962.13 636.12 7/22/2011 8/12/2011 88.9 -59.1 HQ Breccia Zone TDSC 2011CF413 379654.28 6360920.59 1,032.98 576.68 8/13/2011 8/30/2011 269.5 -64.1 HQ Breccia Zone TDSC 2011CF414 379775.49 6361273.36 1,197.93 192.00 8/6/2011 9/1/2011 90.0 -60.6 HQ Condemnation Geotech Drilling 2011CF415 379547.17 6361323.72 1,100.13 626.00 9/1/2011 9/25/2011 272.7 -68.8 HQ/NQ Breccia Zone TDSC 2011CF416 379884.57 6361435.79 1,341.46 331.32 9/3/2011 9/30/2011 46.0 -60.1 HQ/HQ3 Condemnation Geotech Drilling 2011CF417 379774.53 6361273.17 1,198.09 699.50 9/2/2011 10/12/2011 72.8 -68.6 HQ Condemnation Geotech Drilling 2011CF418 379705.00 6360510.00 963.00 69.20 9/27/2011 10/3/2011 270.0 -60.0 HQ Breccia Zone TDSC

2011CF418B 379703.05 6360512.69 962.76 693.12 10/3/2011 10/31/2011 273.4 -59.0 HQ/HQ3 Breccia Zone TDSC 2011CF419 380302.08 6359455.81 1,036.62 398.68 10/3/2011 10/14/2011 210.5 -62.6 HQ3 Main Zone Geotech Drilling 2011CF420 379949.31 6360350.01 1,025.29 672.93 10/10/2011 11/19/2011 277.2 -54.8 HQ/HQ3 Breccia Zone TDSC 2011CF421 380066.39 6358852.59 966.11 327.00 10/15/2011 10/24/2011 84.6 -58.6 HQ Main Zone Geotech Drilling 2011CF422 377976.60 6362561.82 863.31 318.00 10/25/2011 11/2/2011 90.0 -49.3 HQ Condemnation Geotech Drilling 2011CF423 379184.89 6359498.44 874.45 253.30 10/17/2011 10/20/2011 278.0 -55.4 HQ Main Zone Geotech Drilling 2011CF424 379169.49 6359383.05 880.62 154.23 10/23/2011 10/25/2011 278.8 -56.2 HQ Condemnation Geotech Drilling 2011CF425 379743.66 6360258.02 942.70 584.30 11/3/2011 11/17/2011 260.0 -58.8 HQ/HQ3 Main Zone TDSC



Seventeen of the holes were drilled into, and peripherally to, the northern area of the Paramount/Breccia Zone. These holes tested the zone over a strike length of 1,065 m. Due to difficulties with drilling and equipment lost down-hole, three of the holes (2011CF410, 2011CF412, and 2011CF418) were terminated prematurely. In each case, the drill rig was repositioned on the same drill pad in close proximity to the original hole, realigned according to original parameters and completed to depth, with the suffix of “B” added to the drillhole name (Caron et al. 2012). Also worthy of note, hole 2011CF415 was drilled at the north end of the proposed open pit for the purpose of condemnation. However, the mineralized intervals intersected demonstrate that mineralization could extend a considerable distance to the north


past this hole location. In drillhole 2011CF405, the intersection of higher grade mineralization at 164 m, and the intersection of lower grade at shallower depths, correspond with the chargeability anomaly defined by the 14 MV contour, and the weaker chargeability response, respectively (press release February 23, 2011). Another three holes (2011CF414, 2011CF416, and 2011CF417) were drilled at the request of geotechnical consultants, Knight Piésold Ltd. (Knight Piésold), for the purpose of testing the upper levels of the proposed steep high pit wall. As illustrated in Figure 10.6, these were located to the northeast of the Paramount Zone. Two other holes (2011CF423 and 2011CF424) were drilled to the west of the Main Zone, near the purported margin of the Hickman batholiths, and further tested mineralization encountered in a short historic hole. Hole 2011CF423 returned an intercept of 0.387% copper over 41 m (Caron et al. 2012). Drillhole 2011CF419 was drilled in the Main Zone for hydrologic purposes, and 2011CF421 was drilled south of the West Breccia Zone to test a geophysical anomaly. Hole 2011CF422 was drilled approximately 1,500 m northwest of the Paramount Zone, and tested a geophysical anomaly from the Quantec 2011 Titan 24 IP and MT survey. Although this hole was not completed to the target depth due to avalanching, it did return an intercept of 0.146% copper, 0.06 g/t gold, 0.01% molybdenum and 1.0 g/t silver over a core interval of 235 m from 83 to 318 m. This hole represents the discovery of a new zone of mineralization at Schaft Creek and lends support to the interpretation that the other untested chargeability anomalies could represent additional zones of mineralization (press release April 20, 2012).

Some of the more significant drill intercepts from the 2011 campaign are listed in Table 10.10.


Drillhole From (m)

To (m)

Length (m)

Cu (%)

Mo (%)

Au (g/t)

Ag (g/t)

2011CF407 16.97 545.99 529.02 0.389 0.025 0.237 1.936 2011CF408 11.05 368.35 357.30 0.352 0.025 0.069 1.842 2011CF409 116.00 412.75 296.75 0.334 0.032 0.262 1.835 2011CF409 424.52 473.66 49.14 0.555 0.04 0.316 2.137

2011CF410B 263.45 567.28 303.83 0.296 0.019 0.095 1.136 2011CF411 155.10 745.54 590.44 0.39 0.031 0.242 1.913

2011CF412B 14.58 252.10 237.52 0.356 0.028 0.232 2.694 2011CF412B 259.35 636.12 376.77 0.349 0.017 0.283 1.832 2011CF413 42.71 373.08 330.37 0.251 0.015 0.103 1.331 2011CF413 482.08 556.50 74.42 0.256 0.011 0.116 1.374 2011CF415 17.00 170.53 153.53 0.341 0.025 0.268 3.835 2011CF415 317.00 376.77 59.77 0.262 0.018 0.287 1.602

2011CF418B 55.60 580.40 524.80 0.262 0.028 0.055 1.308 2011CF419 17.68 256.00 238.32 0.519 0.027 0.294 2.021 2011CF420 302.00 654.00 352.00 0.305 0.015 0.103 1.339

table continues…


Drillhole From (m)

To (m)

Length (m)

Cu (%)

Mo (%)

Au (g/t)

Ag (g/t)

2011CF422 121.00 157.40 36.40 0.274 0.006 0.094 2.09 2011CF423 133.00 174.00 41.00 0.387 0.006 0.01 0.976 2011CF425 252.00 450.60 198.60 0.267 0.008 0.062 0.898 2011CF425 502.35 557.00 54.65 0.412 0.024 0.13 2.469


Source: Caron et al. 2012

Upon hole completion, down-hole surveys were conducted by the onsite geologist using a Reflex Gyro down-hole surveying instrument. Drill casing was left in each drillhole and plugged with a wooden marker indicating the dip and orientation of the hole. A representative from McElhanney (land surveying), based in Prince George, BC, periodically came to the site and surveyed drill collars, as well as fore-sights and back-sights to determine the azimuth of the hole (Caron et al. 2012).

1 0 . 7 O T H E R C O M M E N T S

10.7.1 GROU ND CONDIT IONS AN D COR E RECOVERY

The following is taken from Caron et al. (2012):

Ground conditions at Schaft Creek have at times presented challenges to diamond drilling contractors, resulting in lost and abandoned drill holes, lost equipment, slow drilling, and lost time (rig down-time). Drill holes collared along the east margin of this zone have presented the greatest challenges to drilling and completing holes, and these challenges are related to a variety of factors.

Overburden and near-surface bedrock characteristics and conditions are key factors to be considered when drilling at Schaft Creek. Overburden is generally thicker to the east of the breccia zone (upslope). Overburden to the east of the northern portion of the breccia zone consists of mixed glacial till and bedrock colluvium that forms a series of vegetation-covered talus/debris fans, which coalesce at mid- to lower slopes. Overburden depths range from 5 to 30 m or more and consist of a wide range of poorly sorted material, ranging in size from fine clay and silt to angular or rounded cobbles and boulders, ranging up to 8 m or more in diameter. Beneath the overburden in this part of the Property, the bedrock surface is typically strongly fractured and broken, altered, glacially scoured, and weathered. From a drilling perspective, both overburden and bedrock appear similar in terms of ground conditions and behave similarly in response to bit-cutting ability and cuttings removal. In many cases, strongly broken and rubbly bedrock is encountered to depths of 100 m or greater. Experience at Schaft Creek has shown that difficulties encountered at shallow depths of the drill hole can and most often do lead to more significant drilling issues at greater depths. Deflection of the drill stem in shallow, very coarse


overburden or poorly consolidated bedrock increases down-hole torque, leading to excessive abrasion and wear on drill rods. Continued wear on the rods compromises their strength and integrity, thus increasing the potential for breaks in the drill string and potential loss of equipment.

The following is taken from Kulla et al. (2011):

Drill core recovery data from portions of the legacy drill campaigns are available. For the Hecla and Teck drill campaigns staff measured core lengths and calculated RQD at site. For the Copper Fox drill campaigns, Copper Fox staff have recorded core lengths and calculated core recoveries and RQD at the sites of the drill holes. Core recoveries have generally averaged more than 90%.

AMEC reviewed the core recovery data and found a trend of decreasing grade with decreasing core recovery. A similar trend is present when separating the core recovery data out by program by previous project operators.

There is a risk of approximately 25% of the assays having negatively-biased copper, gold and molybdenum grades due to low core recoveries.

These observations made by Kulla et al. (2011) are displayed in Table 10.11.

Table 10.11 Core Recovery Statistics

Element

90-100% Recovery <90% Recovery Difference

(%) Count Mean Count Mean

Cu (%) 17,148 0.223 5,718 0.190 -14.5 Au (g/t) 11,145 0.181 3,407 0.150 -17.2 Mo (%) 17,088 0.013 5,750 0.011 -17.7

10.7.2 COLLAR LOC ATION SUR VEY

Copper Fox drill collar locations were acquired by a licensed surveyor from McElhanney using GPS Static and RTK surveys and published in the DAF83CSRS/CGVD 28 Datum. All historic drill collar coordinates were acquired by qualified surveyors, and tied into the Project grid.

10.7.3 DOWNH OLE DIRECTI ON AL SUR VEY

The Copper Fox drill programs used various downhole survey instruments: a Reflex EZ shot tool, a Reflex Flexit tool, a Reflex Gyro, and a COLOG downhole ABI40 Acoustic Televiewer Probe. The acoustic televiewer probe collects a downhole survey by using deflection of light down the hole, similar to a Maxibor survey tool.


10.7.4 MET ALLUR GICAL TEST WOR K

Three major sampling programs conducted by Copper Fox were used for metallurgical test work; core from 51 drillholes completed between 2004 and 2008, core from 22 drillholes completed between 2006 and 2008, and core from 11 drillholes from the Paramount Zone completed between 2010 and 2011.

10.7.5 TETR A TECH COMMENT S

It is Tetra Tech’s opinion that the core logging, geotechnical logging, collar surveying, and downhole surveying procedures of Copper Fox meet industry standards. The orientations of drillholes are generally appropriate for the location of mineralization.


1 1 . 0 S A M P L E P R E P A R A T I O N , A N A L Y S E S , A N D S E C U R I T Y

The majority of the following discussions have been extracted from Kulla et al. (2011), unless otherwise stated.

1 1 . 1 S A M P L I N G M E T H O D S

11.1.1 GEOCH EMICAL SAMPLES

There is no information available on the sampling methods for the geochemical sampling programs over the Schaft Creek deposit.

Soil and rock chip geochemical sampling programs have been completed over the newly acquired Greig/Kreft claims to the north of the Schaft Creek deposit.

Where possible, during the 2008 Greig/Kreft program, soil samples were collected from the B horizon, at an average depth of approximately 10 to 15 cm. A mattock was used to dig the holes, and the soil was placed by hand into standard Kraft paper soil sample bags that were labelled with sample numbers.

Control on locations was provided by hand-held GPS, and sample sites were marked with flagging tape labelled with sample numbers. The soil samples were analyzed at ALS Chemex Laboratories in Vancouver, BC. To evaluate reproducibility, 12 blank samples were collected from a common location, inserted in the sample sequence, and sent to ALS Chemex together with the samples collected from the property.

Rock geochemical samples collected in the field on the Greig/Kreft claims were placed in strong, well-labelled plastic bags, which were sealed with flagging tape. As with the soil samples, sample sites were marked with flagging tape that was labelled with sample numbers. Because of the limited number of samples, no blanks were submitted with the rock samples, which were analyzed at ALS Chemex Laboratories in North Vancouver, BC.

11.1.2 PIT AND TRENCH SAMPLING

There is no information available on the sampling methods for the geochemical sampling program completed by the BIK syndicate in 1957. Trenching has been completed on the newly-acquired Greig/Kreft claims to the north of the Schaft Creek deposit, but limited information is available on the methodologies used.


11.1.3 CORE SAMPLIN G

No information is available describing the core sampling protocols from the Silver Standard and Asarco drilling campaigns. Drill core generated by Hecla and Teck was split using a mechanical anvil and chisel splitter; typically the sample intervals were 10 ft (3.05 m) in length. The first sample interval was taken to the nearest ten foot interval of hole depth. All other sample intervals were then measured in ten-foot-of-hole-depth increments. The geologist designated core intervals for sampling purposes and recorded the sample intervals relative to a sample number. The core was split longitudinally and one half was bagged and sent for analysis. The other half was stored for archiving.

Copper Fox drill core was sampled differently depending on the core size:

• PQ core was quartered for assay sections, with the other half being for metallurgical testwork. Banner et al. (2008) noted that all PQ core, for the purpose of twinning and verifying archival results and obtaining material for metallurgical testing, was sawed in half and one-half quartered. As the core was broken, the rubble was scooped out and divided according to samples. Pieces larger than 10 cm were sawed. Continuous sampling for assay samples was done in fixed 3.05 m intervals for the purpose of matching samples of previous archival sampling.

• HQ core was halved with half sent for assay analysis and the other was retained for archiving. Samples are 3.05 m in length.

Assay samples were placed in numbered five gallon plastic pails and metallurgical samples in numbered 10 gallon pails; both were equipped with security lids. The sample tag for each pail was inserted into a small zip lock plastic bag and affixed to the inside of the pail’s rim. Each sample pail carried a shipping tag fixed to the outside of the pail with the relevant laboratory’s address. Both sample groups were air lifted to a strip at the road and stored in a locked Seacan container. At weekly intervals, a bonded trucking firm retrieved both sample groups and delivered the samples directly to the laboratories.


Recovered drill core was placed in appropriately labelled core boxes and secured with lids at the drill site, then transported from each drill site to camp using four-wheel drive Kubota tractors (RTV utility vehicles) at the end of each shift. At camp, the core boxes were laid out in descending order on the south side of the core logging building, where geological technicians converted drill footage markers to metres, labelled boxes (with box number and measured core interval in each box), and recorded geotechnical parameters. Prior to logging, drill core was moved to an inclined rack and photographed in groups of three core boxes. Close-up photos were taken of particularly interesting features, including notable habit or concentration of mineralization, lithology, alteration, textures, or structures. The entire run of recovered core from each hole was photographed.


Geologists logged lithology, mineralization, alteration, and structure according to the Schaft Creek Lithology and Alteration Guide produced by Cambria. This guide was revised periodically during the season with input from various geologists as the understanding of the deposit evolved. Core logging was performed in a systematic manner according to the genetic relationship of geological events. Lithologies were described and determined as best as possible, although primary textures and compositions were often obscured by variably intense alteration. The alteration was described in terms of mineralogy, mode of occurrence, intensity, and style or alteration facies where discernible. Mineralization was described according to the presence of significant minerals, with particular attention to identifying metallic and sulphide minerals, style or habit of mineralization, mode of occurrence, and percent abundance. Key structures were described according to size, mineralogy (where appropriate), orientation, and texture. Data gathered from geological logging were entered directly into a master database in the core logging building using an acQuire database system (acQuire Technology Solutions Pty Ltd.) with pre-formatted data-entry fields. Assay sample information (sample ID, from/to in metres, interval length, etc.) was also entered into the database. Detailed core inspection was performed with a binocular zoom stereo microscope. A dedicated field laboratory was constructed adjacent the core logging building where acid etching using hydrofluoric acid (HF) and staining using sodium-cobaltinitrite were performed to aid in determining the alteration minerals (primarily to determine the absence or presence of potassium feldspar).

After core logging was completed, core samples were laid out and marked for sampling by (or under the direction of) the geologist that had logged that particular hole. Samples were laid out in 2 m core lengths where possible; however, lithologic contacts, significant changes in alteration or major structural features were honoured, which could result in a pair of samples being shorter or longer than 2 m (up to 1.5 m shorter and up to 1 m longer). The samples were laid out by the geologist according to a set format of batches for inserting blanks, certified reference standards, field duplicates, and laboratory duplicates.

Pre-numbered sample tag books from Acme Analytical Laboratories Ltd. (Acme) were used to generate sample numbers. Each sample number in the book had two perforated tags. For each sample, a unique sample number was assigned from the tag book, and that number was written onto a 12 in. by 20 in. clear poly (plastic) bag with a black permanent marker. One pre-numbered sample tag was placed in the numbered bag and second pre-numbered tag was stapled in the core box at the beginning of each sample run. The same sample number was written on the drill core at the beginning of each sample run of core. The geologist drew a “cut line” with a grease pencil on the drill core to indicate to the cutter where the core should be cut; this was done to help ensure that both halves of the sampled core were similar in mineral content. Core boxes were then placed on a roller rack for transfer to the sample cutting area.

Core samples were cut with one of three high-powered electric saws with 12 in. diameter diamond-impregnated blades and a moveable carriage to securely hold


the core. The core cutters were instructed to clean the holding table and sliding carriage with a paint brush and water prior to cutting each sample.

Only one sample bag was open at a time at each cutting saw. Core cutters were instructed to cut the core in half and to place the same half of core in a sample run into the appropriate sample bag, while the other half consistently went back into the core box in the same position as it was prior to sampling. Core cutters regularly cleared sample reject debris from the containment reservoir throughout the day as necessary and at the end of each. The sampled core boxes were then stored in a holding rack, and the split core was subsequently taken to the racks in the core storage area.

After cutting with a diamond saw, one-half of the core is collected for sample preparation and analysis and the other half is retained for future reference. Sample intervals were selected based on lithology changes/alteration intensity/estimated mineral content (press release December 14, 2010; press release December 12, 2011).

1 1 . 2 A N A L Y T I C A L A N D T E S T L A B O R A T O R I E S

11.2.1 ASSAY LABOR AT ORIES

From Kulla et al (2011):

Several primary assay laboratories have been used for routine analyses over the Project history. No information is available from the Silver Standard and Asarco exploration campaigns.

The primary laboratory for the Hecla exploration campaigns was Chemex Ltd (Chemex), in North Vancouver, BC. Hecla completed check assays at Chemex, Coast Eldridge Laboratories (Coast Eldridge), and Bondar-Clegg & Co. Ltd. (Bondar Clegg), in Vancouver. Laboratory accreditations at the time samples were analysed are not known.

For the Teck program, Giroux and Ostensoe (2004) note:

The assay laboratory attached to the Afton mine and smelter complex at Kamloops, BC was employed for metal determinations. That operation was a not-at-arms-length affiliate of Teck but was an industry standard facility staffed by registered assayers. Teck also carried out programs of check assaying to maintain confidence in the results.

At the time of analysis, the Afton mine was a Teck operation. In addition, Giroux and Ostensoe (2004) note:

...samples were delivered to both a not-at-arms-length and a commercial analytical laboratory.


Teck gold analyses were performed by the University of British Columbia. Check assays for gold and silver were performed at General Testing Laboratories. Additional single-sample checks were performed at Chemex, Bondar-Clegg, and Southwestern Assayers & Chemists Inc. (Southwestern) in Tucson, Arizona. Laboratory accreditations at the time samples were analysed are not known.

Copper Fox has used a number of analytical laboratories as the primary laboratory over the Project history, including:

• 2005: Loring Laboratories Ltd. (Loring) in Calgary, Alberta. Loring was not an accredited laboratory at the time the analyses were performed, but did take part in proficiency testing. Loring Laboratories achieved registration with ISO90000:2001 in 2009 and is working towards ISO 17025 in certain analysis methods.

• 2006-2008: Inspectorate-IPL Laboratories Ltd. (Inspectorate) in Vancouver, BC. Inspectorate currently holds ISO 9001:2000 and undergoes regular proficiency testing

• 2008-2011: Acme Laboratories (Acme) in Vancouver, BC. Acme achieved ISO9001 accreditation in 1996.”

• October 2011: the Vancouver laboratory received formal approval of its ISO/IEC 17025:2005 accreditation from Standards Council of Canada for the certain tests.

Check assays for the Copper Fox programs taken by AMEC were also analysed by Acme.

Check assays taken by Tetra Tech were analyzed at Accurassay Laboratories (Accurassay) of Thunder Bay, Ontario, which is accredited under International Organization for Standardization/International Electrotechnical Commission (ISO/IEC) Guideline 17025 from the Standards Council of Canada (SCC).

1 1 . 3 S A M P L E P R E P A R A T I O N A N D A N A L Y S I S

11.3.1 LEGAC Y PR OGR AMS

For a review of the sample preparation and analysis methods employed during the Hecla and Teck programs, refer to Giroux and Ostensoe (2004).


11.3.2 COPPER FOX PR OGR AMS

From Giroux and Ostensoe (2004):

SAMPL E PR EPARAT ION

Sample preparation at Inspectorate-IPL and ACME consisted of drying up to 24 hours, crushing to > 80% less than 10 mesh, riffle splitting to 250 g and pulverization to > 85% passing less than 200 mesh.

“The analytical method utilized at Loring was a copper assay using inductively coupled plasma atomic emission spectrometry (ICP-ES) following an aqua regia digest. Molybdenum analyses were performed with ICP-ES following a three-acid digest. The analytical method utilized at Inspectorate-IPL and ACME laboratories was a 30-element inductively-coupled plasma atomic emission spectrometry (ICP-AES or ICPES) method following a four-acid digest.

• 0.25 to 1.0 g of sample is weighed and transferred into a 150 ml beaker. HCl, HNO3, HCIO4, and HF acid solutions are added and digested on a hot plate until dry. The sample is boiled again with 80 ml of 25% HCl for 10 minutes, cooled, bulked up to a fixed volume with distilled H2O and thoroughly mixed

• Cu, Mo, and Ag are determined using an inductively coupled plasma emission spectrometer. All elements are corrected for inter-element interference and all data are stored onto a computer disk

• Quality control: the spectrophotometer is first calibrated using three known standards and a blank. The samples to be analyzed are then run in batches of 38 or fewer samples. Two tubes with an in-house standard and an acid blank are digested with the samples. A known standard with characteristics best matching the samples is chosen and inserted after every 15th sample. Every 20th sample is re-weighed and analyzed at the end of the batch. The blank used at the beginning of the run is analyzed again. The readings of the control samples are compared with the ‘pre-rack known’ to detect any calibration drift.

At Inspectorate-IPL a number of samples were also analysed using atomic absorption (AA) following a four-acid digest.”

At Loring, Inspectorate-IPL and ACME, the gold analyses were performed by fire assay with an atomic absorption finish. Below is a description of the generic procedures used in lead fire assaying for gold:

• Duplicates of 50 g (2 assay tons) are weighed into fusion pots together with various flux materials, including lead oxide. After thorough mixing of silver inquart, a thin borax layer is added.


• The sample is placed into a fire assay furnace at 2000ºF for 1 hr. Elemental lead, from lead oxide, collects the Au and Ag.

• After 1 hr fusion, the sample is poured into a conical cast iron mold. The Au and Ag-bearing lead button/bead at the bottom is separated from the slag.

• The lead button is placed in a preheated cupel into the furnace for a second separation at 1650ºF. Lead is absorbed by the cupel, whereas gold and silver remain on the surface of the cupel.

• After 45 min of cupellation, the cupel is removed from the furnace and cooled. The dore bead containing the precious metals is transferred to a test tube (sample duplicates are combined) and dissolved in hot aqua regia.

• The Au in solution is determined with an atomic absorption spectrophotometer. The Au value in ppb or g/t is calculated by comparing the reading with that of a standard.

• Fire assay quality control: every group of 24 fusion pots contains 22 samples, one internal standard or blank, and a re-assay of every 20th sample. Samples with Au >1,000 ppb are automatically checked by fire assay/AA. Samples with Au >10,000 ppb are automatically checked by fire assay/gravimetric methods.

At Loring, the silver assays were performed by fire assay. At Inspectorate-IPL and ACME the silver assays were performed as a component in the ICP multi-element packages.

Additional information regarding the 2011 drill program is as follows (Caron et al. 2012):

Core samples from the 2011 exploration drilling program were sent to the Acme Smithers branch for sample preparation. Samples were crushed to 90% passing through a 10-mesh sieve according to Acme prep code R200-250. A 1 kg sample was taken for analysis, and the remainder of the sample was returned to the sample bag. The 1 kg sample was further split by riffle splitter to 250 g for analysis and rejects were returned to sample bag. A second reject (~750 g) was placed in a new labelled plastic bag for further client instruction. Acme retained the 750 g rejects in wood pallet bins separate from the large rejects/original bags; these and all other sample rejects were stored at Acme facilities into early 2012. The 250 g sample was dried at 60°C and pulverized to 85% passing 200-mesh sieve for analysis (Acme code P200). A second 250 g pulp was generated for every batch (35 samples) as a duplicate.

Analysis on all the samples was conducted at Acme’s main Vancouver laboratory facility. All samples were processed and analyzed for multi-element assay with a hot 4-acid digestion and inductively coupled plasma (ICP)


emission spectroscopy (ICP-ES) (Acme code 7TD2). This method involved sample digestion with an acid solution of H2O-HF-HClO4-HNO3 with 50% HCl. Samples were also analyzed by inductively coupled plasma mass spectrometry (ICP-MS) (Acme code 1EX). This method was used for the determination of Ag due to the lower detection limit of the procedure compared to that of the 7TD2 assay procedure.

All samples were analyzed by fire assay for Au with ICP-ES from a 50 g sample and a detection limit of 0.005 g/t (ACME code G601 + G610). The fire assay method involved blending the sample with fire-assay fluxes and firing at 1,050°C to liberate Ag ± Au ± PGEs (in molten Pb-metal phase). The resulting Pb button was fired at 950°C to produce an Ag ± Au ± PGEs dore bead. The bead was then analyzed using ICP. Samples with Au results >10 g/t were fire assayed with the same method as above but with a gravimetric finish (ACME code G601 + G612). Samples were also analyzed for total sulphur by Leco combustion analysis with a detection limit of 0.02% sulphur (ACME code 2A13).

Base metals were assayed using the AcmeLabs’ 7TD package which includes four-acid digestion and ICP-ES finish. Lower detection limits are as follows: copper more than 0.001%, molybdenum more than 0.001%, and silver more than 2 g/t. Gold is assayed by the G6 fire assay package – fusion of 30 g followed by ICP-ES finish; with a lower detection limit of 0.005 g/t. In 2010, Copper Fox completed the initial silver assay using a 2.0 g/t detection limit. Any samples less than 2 g/t were re-analyzed using the 1EX code from AcmeLabs that had a 0.1 g/t detection limit. This method uses hot four-acid digestion with an ICP-MS finish. AcmeLabs has an ISO 9001:2008 rating.

1 1 . 4 Q U A L I T Y A S S U R A N C E A N D Q U A L I T Y C O N T R O L

11.4.1 LEGAC Y PR OGR AMS

For a review of the Quality Assurance and Quality Control measures used during the legacy programs, the reader is referred to Giroux and Ostensoe (2004) and Kulla et al. (2011).

11.4.2 COPPER FOX QA/QC PR OGR AMS

From Kulla et al. (2011)

During the period 2005 to 2008, the QA/QC program included a blank sample, a standard sample and a duplicate sample that were submitted in each batch of 40 samples. In total, 77 blanks, 77 duplicates and 78 standards were analyzed.

A total of six standard samples were used during the 2006 program. Two of these were from Canadian laboratories, and four were prepared by International Plasma


laboratories (IPL) for Copper Fox from samples from the property. Duplicate samples were submitted by further splitting the half core in half (quartered).

Due to the QA/QC deficiencies noted in the 2005 to 2008 drill campaigns (refer to Section 12), Copper Fox undertook a comprehensive program of check assaying. Batches of samples were sent to ACME laboratories for analysis. The samples were sent with blanks, standards, coarse duplicates and quarter-core twin samples inserted into the batches.

During 2010 and 2011 programs, Copper Fox submitted samples from the on-going drilling campaigns together with pulp rejects from the 2005 to 2008 drilling campaigns and quarter-core samples collected from legacy drill holes.

DUPL ICAT ES

Copper Fox included 62 field and 124 coarse duplicate rejects to test the data-set for preparation precision. These represent 1.3% and 2.6 % of the assays. Copper Fox did not include pulp duplicates and analytical precision was not assessed. There was insufficient sample for the analyses of Mo and Cu.

The results of the field duplicates are shown in [Table 11.1]. The samples that were used are a combination of re-sampling as well as new samples. A relatively high failure rate of 16.4 % for Cu is not considered to be material, and results needs to be separated into the new and re-sampled results for future analyses. A relatively high failure rate for Mo (16%) is not considered to be material as a large portion of failed samples are close to the detection limit. Of these, 10 samples were re-assayed for Au and 76 for Ag. The results of the coarse duplicate analyses are shown in [Table 11.2].

Table 11.1 Summary of the Performance of Field Duplicates for the Copper Fox Drillholes

Element

Number of

Pairs

Number of

Failures

Failure Rate (%)

Cu 61 10 16.4 Mo 61 10 16.4 Au (G6-50) 52 6 11.5 Au (G6) 10 1 10.0 Ag (7TDES) 62 0 0.0 Ag (1EX) 39 1 2.6


Table 11.2 Summary of the Performance of Coarse Duplicates for the Copper Fox Drillholes

Element

Number of

Pairs

Number of

Failures

Failure Rate (%)

Cu 125 12 9.6 Mo 125 6 4.8 Au (G6-50) 125 16 12.8 Au (G6) 10 1 10.0 Ag (7TDES) 125 0 0.0 Ag (1EX) 76 7 9.2

BLANK S

Copper Fox included 140 blank samples, representing 3% of the original samples. Two different blanks were used, but both were assessed simultaneously. The results for Cu, Au, Mo and Ag for both blanks are at detection limit and indicate that there is no carry over contamination for these elements. One hundred and a thirty eight of the 140 Cu assay results for blanks are less than 10 times the detection limit, with the results of SC-2010-BLANK indicating slightly higher levels of Cu for this material than for SC-2010-BLANK2, where the results are between the detection limit and five times the detection limit. AMEC considers these levels of Cu to represent background levels for Cu.

Though no carry over is indicated, blanks should usually be submitted after samples with elevated levels of mineralization to give a better assessment of the levels of contamination.

STANDARD REFEREN CE MATERIAL S

Copper Fox have inserted three commercially-supplied CRMs, with 211 CRM samples representing 4.5 % of the total data-set. SRMs were obtained from CDN Resource Laboratories Ltd. Two of the standards, CDN-CM-4 and CDN-CM-7 were certified for Au, Cu and Mo, and CDN-GS-P2 was certified for Au only.

The results of the assessment of SRM performance are shown in [Table 11.3]. The results of the SRMs indicate that there is no measurable bias for all three elements and that the analytical procedure that is used is adequate for the style of mineralization. AMEC notes that the CDN-GS-P2 SRM is not certified for Cu or Mo and none of the SRMs are certified for Ag.


Table 11.3 Summary of the Performance of CRMs

Standard Element

Certified Values AMEC Calculated Values

Certified Valued

2 Standard

Deviations

Number of

Results

Mean of

Results

Calculated Bias (%)

Calculated Standard Deviation

CDN-CM-4 Au (g/t) 1.180 0.012 20 1.1543 -2.2 0.062 Cu (%) 0.508 0.025 30 0.5040 -0.8 0.011 Mo (%) 0.032 0.004 30 0.0311 -2.8 0.001

CDN-CM-7 Au (g/t) 0.427 0.042 100 0.4193 -1.8 0.033 Cu (%) 0.445 0.027 100 0.4450 0.0 0.008 Mo (%) 0.027 0.002 100 0.0266 -1.4 0.001

CCDN-GS-P2 Au (g/t) 0.214 0.020 81 0.2036 -4.9 0.012

Further information regarding the 2011 drill program is provided below (Caron et al. 2012).

Drill core samples from the 2011 program were shipped in unique numbered batches of 35 samples each to correspond with AcmeLabs’ own internal QA/QC procedures. Each batch was designed to include the following samples:

• Primary drill core samples: From drilling carried out in 2011, consisting of half cut HQ, NQ, and lesser BQ drill cores.

• Blanks: One blank sample was inserted per batch, generally as the first sample of each batch.

• Standards: Purchased certified reference materials CDN-CM-4, CDN CM 7, CDN CM 8, CDN-CM-10, CDN-GS-P2, OREAS-50c, OREAS-152a, OREAS153a, GBG303 5, GBM910-5, and GMO-05 were inserted in each batch at a rate of up to five per batch.

• Field duplicates: One field duplicate of core was included in each batch. To produce the field duplicate, the 2011 drilled core was cut in half, with one-half remaining in the box as reference core. The other half was then cut in half to produce two lengths of quartered core; one length of quarter core was collected as a primary sample, and the second quarter was sampled as the field duplicate under identical analytical methods.

• Reject (laboratory) duplicates: One was included per batch. These were prepared at the laboratory; a 250 g riffle split was taken from the 1 kg 10 mesh first split and pulverized then analyzed.

The following conclusions of the quality assurance/quality control (QA/QC) report are extracted from Caron et al. (2012):

On the whole, the QA/QC results were acceptable, particularly for Cu and Mo. No problematic laboratory bias was identified. There was an apparent slight negative


bias on Au values at lower concentrations (as indicated by the Au data for standard CDN GS P2). This should be monitored closely in the future given that a large portion of the Au data for Schaft Creek is near these lower values.

A greater amount of precision was shown with the reject duplicates than the core field duplicates. Pulp duplicates showed very good correlation. Thus, it appears that the lack of precision in the field duplicates is due to geological factors and/or sampling error and is likely not due to imprecision at the laboratory. Precision was much lower for Au, and even more so for Ag. However, much of this may be attributed to the overall low concentrations, with many analyses close to the detection limits, or by nugget effects in the case of Au.

Additional sample verification is planned to check for variability (bias) in the analyses from AcmeLabs. Five percent of pulps from samples collected from the 2011 diamond drilling and historic core re-logging are to be sent under different and unique sample identification numbers to AcmeLabs (5%) and ALS Chemex Laboratories (ALS Chemex) (5%) in North Vancouver, BC. The samples selected are from a range of grades for copper, molybdenum, gold, and silver, and from evenly distributed time periods over the course of the 2011 program. Reference standards at various grades, including low grades found in the deposit area for copper, molybdenum, gold, and silver, are to be inserted regularly into this sample stream. The pulps will then be processed by the same or equivalent analytical techniques as were used in the 2011 program.

Flow charts outlining the sample processing procedures and corresponding splits for data verification and quality control applied in the 2011 program are provided in Appendix F of this report (Caron et al. 2012).

1 1 . 5 D A T A B A S E S

The following text is from Kulla et al. (2011).

All data in the field is recorded in written form in field books, log books, sample sheets, logging forms or shipping forms. Various phases of record keeping are repeated in the subsequent step to confirm recorded values or numbers.

All field data is entered into Excel tables. Errors in data entry picked up during the verification stage can be confirmed and corrected from filed data. Data from third parties such as laboratories or survey contractors are generally supplied in digital and printed form. These records are printed out and kept in binders for reference during data verification.

In 2010, Copper Fox contracted Cambria Geosciences Ltd. to compile a complete Acquire© database of all geological information collected at the project. Cambria completed the following activities during compilation of the project database:


• Assembly of the historical data files and paper records available to Copper Fox.

• Analytical information was obtained from the original certificates from the labs, loaded in the Mark 1 acQuire database and verified against the log records and certificates.

• The Copper Fox data (2005 and later) was loaded directly from the geologists Excel-file drill core logs (geology, RQD, core recovery, and assay intervals and sample numbers).

• Assembly of a Mark 1 acQuire database for storage of the assembled information.

• Cambria created a database structure in acQuire, and a script was written to extract a “best assay” result for each interval in the drillhole database. The “best assay” result is selected based upon a qualitative judgment of the available assay data with the latest Acme laboratory results taking priority over all other assays from previous assay laboratories.

Since all assay values are included in the database, there were more than one set of assay results for all samples re-assayed at secondary lab. For the data used in the resource estimate, only one value could be used for each sample, and a consistent hierarchy in result selection was chosen based upon which lab was used. All results from AcmeLabs were used, and values from Loring Laboratories Ltd. (Loring) were only used if there were no results from AcmeLabs. Additionally results from Inspectorate-IPL Laboratories Ltd. (Inspectorate-IPL) were only used if there were no results from either AcmeLabs or Loring. If no other results were available, data in the “Unknown” columns were used. This order of precedence was set based upon conclusions made by Cambria upon examination of assay results.

1 1 . 6 S A M P L E S E C U R I T Y A N D S T O R A G E

The following text is from Kulla et al. (2011).

Sample security at the Schaft Creek Project during the Copper Fox drilling programs relied upon the remote nature of the site. Sample collection and transportation have always been undertaken by company or laboratory personnel using company vehicles.

Assay samples were placed in numbered 5 gal plastic pails and MET samples in numbered 10 gal pails, both with security lids. The sample tag for each pail is inserted into a small zip lock plastic bag and affixed to the inside of the pail’s rim. Each sample pail carries a shipping tag fixed to the outside of the pail with the laboratory’s address.

Assay samples were shipped to International Plasma Labs Ltd. (IPL) in Richmond, BC, and MET samples were sent to Process Research Assoc. Ltd (PRA) in Richmond, BC. For this purpose both sample groups were air lifted to a strip at


the road and stored in a locked Seacan container. At weekly intervals, a bonded trucking firm retrieves both sample groups and delivers them directly to the laboratories.

Chain of custody procedures consisted of filling out sample submittal forms that were sent to the laboratory with sample shipments to make certain that all samples were received by the laboratory.

All core is stored on racks within secure storage facilities at the field camp.

Samples for assay and geochemical analysis were collected in clear poly 12” by 20” bags with unique sample ID numbers and were securely fastened with zip-ties. Samples were stored in the core logging facility until 35 samples were ready to be processed into batches (referred to as a “Dispatch” in acQuire) (Caron et al. 2012).

Sample dispatch processing included laying out all 35 samples and cross-checking the samples IDs against the sample logs. Samples were weighed and placed in white, woven poly rice bags, with each rice bag limited to approximately 15 to 23 kg, and the weight of each rice bag was clearly written on the bag. The rice bags were doubly secured with zip-ties, and a unique numbered security tag was affixed to the neck of each rice bag. Each rice bag was labelled with its dispatch number, and the dispatch numbers were recorded and sent via e-mail to AcmeLabs in Smithers, BC for their confirmation upon receipt at the laboratory. The sample requisition forms were inserted into rice bag number 1 of each dispatch. Chain-of-custody paperwork describing addresses of the sender and recipient, total dispatch weight, and chain-of-custody details was attached to the first bag of each dispatch (Caron et al. 2012).

All samples were flown out of camp by Tsayta Aviation. Samples were shipped to the Dease Lake airport where they were unloaded by Tsayta Aviation personnel and loaded into a locked metal trailer for storage until they were picked up by Canadian Freightways. Once or twice weekly, Canadian Freightways trucked the samples directly to the AcmeLabs prep laboratory in Smithers. Acme Labs personnel regularly reported to camp geologists by e mail regarding the samples and security tags that had been received at the laboratory in Smithers (Caron et al. 2012).

1 1 . 7 D E N S I T Y M E A S U R E M E N T S


Ninety-six samples of full diameter drill core were selected from drill holes 2011CF407 through to 2011CF425 for specific gravity determination, averaging about five samples per drill hole. Samples were ~13 to 20 cm long and were selected by the geologist responsible as being representative of lithology, alteration, or mineralization. Samples were collected roughly every 100 m throughout each drill hole, or as dictated by changes in lithology/alteration/mineralization. A labelled wooden reference block was inserted in the core box from where the sample was collected. Samples were


assigned a unique sample ID number and sent to the Acme laboratory for specific gravity measurement according to criteria specified by Copper Fox.

The specific gravity samples were processed according to Acme laboratory code G813-WAX as follows: The core was first dried and weighed, then covered in wax to seal any fractures and to eliminate the porous nature of the core. The waxed core was then re-weighed to note the amount of wax, and then weighed in water. The specific gravity was then calculated as a ratio of the sample weight in air and the sample weight in water.

1 1 . 8 G E O T E C H N I C A L D R I L L I N G


Geotechnical core logging was conducted prior to core splitting and sampling by Tahltan Nation Exploration Services (TNES) workers under supervision of Cambria geologists or by Cambria geologists. The core attributes recorded in the geotechnical logging included core recovery, rock quality designation (RQD), and magnetic susceptibility. At the request of Copper Fox, specific gravity measurements were not performed onsite. A brief description of the geotechnical logging procedures is provided below. Core recovery was calculated by measuring the length of core recovered between the drilling footage markers in the core boxes and dividing by length of the drilled run as indicated on the footage blocks. The RQD was also determined for each run of core between the drillers’ footage blocks, typically 3.05 m per run of drill rod. The RQD was calculated as the cumulative length of core of all pieces in a core run ≥10 cm (measured at the centre line down the core axis), divided by the length of the specific core run. Magnetic susceptibility was measured using a hand-held Exploranium Kappameter KT-9 magnetic susceptibility meter. Measurements were taken on full-diameter core where possible and as close to drillers’ footage block locations as possible. Drill core was broken and blocky to rubbly in many areas. If no suitable whole core was available in a run of core, a reading was taken from the broken core and may not reflect the true nature of the magnetic susceptibility of the rock. Analysis of these data should be reviewed in conjunction with the RQD data.

1 1 . 9 C O M M E N T S

It is Tetra Tech’s opinion that the quality of the gold, copper, molybdenum and silver data are sufficiently reliable to support the accompanying mineral resource estimate. It is Tetra Tech’s opinion that sample preparation, analysis, and security have been generally carried out in accordance with exploration best practice guidelines and industry standards.


1 2 . 0 D A T A V E R I F I C A T I O N

1 2 . 1 D A T A B A S E V E R I F I C A T I O N

Tetra Tech performed an internal verification process on the Project database against the original logs, original downhole directional survey files, and laboratory-issued assay certificates. The validation of the data was completed on 26 of the total 410 drillholes in the database, accounting for an overall 6.3% of all drillholes.

The data verification process examined the collars (easting, northing, elevation, length, collar azimuth, and collar dip), survey (depth, azimuth, and dip), and assays (sample number, and grades of copper, gold, molybdenum, and silver). Drillholes included in the general verification process are as follows: 05CF235, 05CF240, 06CF254, 06CF260, 06CF263, 06CF288, 07CF294, 07CF298, 07CF303, 07CF313, 08CF322, 08CF327, 08CF363, 08CF371, 08CF386, 08CF387, 10CF398, 10CF402, 10CF405, 11CF408, 11CF413, 11CF416, 11CF419, 11CF421, 11CF424, and 11CF425.

Additionally, the survey data validation was performed on the following drillholes: 05CF237, 07CF314, 08CF344, 2010CF398, 2010CF399, 2010CF401, 2010CF402, 2010CF404, 2010CF405, 2010CF405B, 2011CF407, 2011CF408, 2011CF409, 2011CF4010, 2011CF4010B, 2011CF411, 2011CF412, 2011CF412B, 2011CF413, 2011CF414, 2011CF415, 2011CF416, 2011CF417, 2011CF418, 2011CF418B, 2011CF419, 2011CF420, 2011CF421, 2011CF422, 2011CF423, 2011CF424, and 2011CF425.

The Schaft Creek database is maintained in acQuire, by Cambria. At the request of Copper Fox, Cambria provided Tetra Tech with the database, in the form of an export to MS Access 2007. It is comprised of tables containing data on lithology, assay, best assay table, alteration, veining, structure, specific gravity, acquire codes and descriptions. A five-page .doc file accompanied the database and provided a thorough description of the database tables. Cambria also provided Tetra Tech with all laboratory-issued assay certificates, original drill logs, and original downhole directional survey files. A spreadsheet listing all samples from the 2005 to 2008 drilling programs that were re-assayed at AcmeLabs was also provided. The assay results for such samples were listed under their original ID in the database. Core logs of holes drilled between 2005 and 2008 were initially recorded in excel spreadsheets, and were later imported into the acQuire database. For holes drilled in 2010 and 2011, logs were either hand-written and re-entered into acQuire, or were directly entered in the acQuire database.


COLL ARS

For the collar validation of the 26 drillholes, the eastings, northings, elevations, final depths, azimuths, and dips of the database entries were compared to the values in the original logs. For the location coordinates, minor discrepancies were found for five of the drillholes. These were attributed to the collars having been later surveyed by a more accurate instrument (differential GPS), and such occurrences were therefore not counted as errors. Similarly, discrepancies were found for the azimuths and dips of four of the verified drillholes. These were attributed to the logs containing the planned orientations, and the database containing the actual orientations. As such, nor were these were not counted as errors. Eight of the verified drillholes contained discrepancies in final depth values. As outlined in Table 12.1, these were attributed to either rounding to one decimal place, or to minor database entry errors. All corrections were made to the database.

Table 12.1 Corrections Made to End of Hole Records in Database

Hole ID

Database Original Logs

Difference (m) Comment

Depth (m)

Depth (m)

07CF294 151.40 151.35 -0.05 Database rounded to one decimal place, correct end of hole depth 151.35 m

07CF298 153.40 153.30 -0.10 Minor database entry error 07CF313 421.84 421.80 -0.04 Minor database entry error 08CF322 136.30 136.25 -0.05 Database rounded to one decimal place,

correct end of hole depth 136.25 m 08CF363 62.50 62.48 -0.02 Database rounded to one decimal place,

correct end of hole depth 62.48 m 08CF386A 59.90 59.89 -0.01 Database rounded to one decimal place,

correct end of hole depth 59.89 m 08CF387 25.90 25.91 0.01 Database rounded to one decimal place,

correct end of hole depth 25.91 m 2010CF398 539.50 539.19 -0.31 Minor database error, end of hole depth 539.19 m

SURVEYS

For the survey validation, the depth, azimuth, and dip were examined. Out of a total of 5,562 entries, 1,728 entries were verified, accounting for 31.1% of the survey dataset. Original survey records were provided in the form of .xls files for the Reflex Gyro surveys, and scanned copies of FlexIT and EZ Shot hand-written papers from the drilling contractors.

No errors in dip were observed, and only two errors in azimuth, accounting for 0.12% of the survey dataset, were found. Similarly, only four errors in depth were observed, summing to 0.23% of the survey dataset. Corrections were made to the database, and are summarized in Table 12.2.


Table 12.2 Corrections Made to Survey Table of Database

Hole ID

Database Original Survey Files

Comments Depth

(m) Azimuth

(°) Dip (°)

Depth (m)

Azimuth (°)

Dip (°)

05CF237 0.00 71.40 -59.70 n/a n/a n/a Azimuth did not consider magnetic declination of

21.2°, correct azimuth 92.6°, *also corrected in header table*

05CF237 46.94 71.40 -59.70 49.00 71.4 -59.7 Incorrect depth, azimuth did not consider

magnetic declination of 21.2°, correct azimuth 92.6°

08CF344 229.00 35.00 -60.50 204.50 13.9 -60.5 Depth entry error, azimuth correct (mag declination)

2010CF398 447.80 89.73 -45.00 448.06 68.5 -45.0 Depth error when converting from feet to metres,

azimuth correct (mag declination) 2010CF398 539.50 91.13 -45.20 539.15 69.9 -45.2 Depth error when converting

from feet to metres, azimuth correct (mag declination)

2011CF421 84.57 90.00 -58.56 n/a n/a n/a Data entry error, value not in original records,

removed from database

Additionally, there were double entries for zero depths for six drillholes. The entries with the rounded values were removed from the database (Table 12.3), and these were not counted as errors.

Table 12.3 Duplicate Collar Survey Readings – One Entry from Each Drillhole Removed from Database

Hole ID Depth

(m) Azimuth

(°) Dip (°)

2011CF412B 0 88.9 -59.1 2011CF412B 0 88.9 -59.1 2011CF413 0 269.5 -64.1 2011CF413 0 269.5 -64.1 2011CF415 0 272.7 -68.8 2011CF415 0 272.7 -68.8

2011CF418B 0 273.4 -59.0 2011CF418B 0 273.4 -59.0 2011CF420 0 277.2 -54.8 2011CF420 0 277.2 -54.8 2011CF424 0 278.8 -56.2 2011CF424 0 278.8 -56.2


When comparing, the survey files to the database, it was noted that 88 survey records from holes drilled in 2011 were not entered into the database. Cambria explained that even though the values appeared to be valid, they should not be used since they failed a “drift check” on the gyro instrument, and were likely collected while the instrument was in motion.

For holes drilled in 2010, various values for magnetic declination (21.0°, 21.1°, 21.2°, and 21.23°) have been used. It is recommended that only one value be used for each drilling year. It was also observed that for a few holes (such as 07CF314), the pull-back depth was occasionally subtracted from the reading depth and sometimes it was not. When station reading depths were converted from feet to metres, it is recommended that a decimal place value (such as the second) be chosen and used consistently throughout. Sometimes the planned orientation is entered as the hole orientation at zero depth, and sometimes the orientation is calculated from extrapolating upwards from the first station reading. It is recommended that a consistent approach be adopted and maintained. It was also observed that sometimes the pullback depth was subtracted from the station reading depth (such as for 07CF314), and it is recommended that this not be done. Commonly for holes drilled in 2011, the azimuth and dip values are rounded to 2 or 3 decimal places, but then sometimes the same hole have values from the same survey type rounded to 1 or 0 decimal places. It is recommended that one method be adopted and used consistently.

For holes drilled prior to 2010, corresponding to when Cambria first began managing the exploration data, there is little record of what was done. Cambria has done an excellent job in maintaining the database and has done their best to correct all questionable entries.

ASSA YS

The database entries for sample numbers and assay grades for copper, gold, molybdenum, and silver of 3,612 of the total 33,163 entries (excluding QA/QC measures) were verified against the laboratory-issued assay certificates, accounting for 10.9% of the assay dataset. Only one discrepancy was observed, representing only 0.003% of the data, and is summarized in Table 12.4. The sample “to” value was deeper than the end of hole length, and was corrected in the database.

Table 12.4 Correction Made to Sample Interval

Hole ID Sample

ID From (m)

To (m) Comment

07CF313 128863 419.1 421.84 End of hole at 421.8 0m, correct "to" value for sample 128863

There was also one sample (Table 12.5) that yielded a value above the upper detection limit of the initially used analytical method, and the actual value from re-analyzing with another method was not imported into the assay table of the


database. This represents only 0.003% of the entire assay dataset. However, the correct value of 20.2 g/t had been included in another table in the master database called “Best Assay”.

Table 12.5 Value Not Imported into Assay Table of Master Database

Hole ID

Sample ID Lab Certificate ID Au_G6-50_gpt

Column G6Gr-50 Not Imported

2011CF413 1053547 ACME SMI11000473 >10 20.2

Over the years, various assaying laboratories, which each have different detection limits, have been used for analyzing Project samples. When assay results yield values below the detection limit, the relevant detection limit is entered into the master database. For all such occurrences, the values used in the resource estimate calculation were changed to half of the detection limit of the assaying laboratory. These values are summarized in Table 12.6.


Table 12.6 Assaying Laboratory Detection Limits and Conversion Factors Used for Database and the Resource Estimate

Lab

Original Data Database

Element Units Type Lower

DL Upper

DL Element Units Conversion Lower

DL Upper

DL

AcmeLabs Cu % 7TDES 0.001 - Cu % None 0.0005 - Mo % 7TDES 0.001 - Mo % None 0.0005 - Au g/t G6 0.005 10 Au g/t None 0.0025 10 Ag g/t 7TDES 2 300 Ag g/t None 1 300 Ag ppm 1EX 0.1 200 Ag g/t None 0.05 200

Loring Cu % FA - - Cu % None - - MoS2 % FA 0.001 - Mo % MoS2*0.5994, rounded to 4 decimals 0.0002997 -

Au g/t FA 0.01 - Au g/t None - - Ag g/t FA 0.1 or 0.5 - Ag g/t None 0.05 or 0.25 -

Inspectorate-IPL Cu ppm ICPM 1 - Cu % Cu(ppm)/10,000 0.00005 - Cu % IPLASY 0.01 - Cu % None 0.005 - Mo ppm ICPM 1 - Mo % Mo(ppm)/10,000 0.00005 - Mo % ICPASY 0.0006 - Mo % None 0.0003 - Au g/t FAAAS 0.01 - Au g/t None 0.005 - Ag g/t ICPM 0.5 - Ag g/t None 0.25 -

table continues…


Lab

Original Data Database

Element Units Type Lower

DL Upper

DL Element Units Conversion Lower

DL Upper

DL

Unknown Cu % - Tr - Cu % None - - Cu % - 0.001 - Cu % None - - Cu % - 0.002 - Cu % None - - Cu % - 0.01 - Cu % None - - Mo % - Tr - Mo % None - - Mo % - 0.0006 - Mo % None - - Mo % - 0.0012 - Mo % None - - Mo % - 0.006 - Mo % None - - Au oz/ton - 0.0001 - Au g/t Au(oz/ton)*31.1035/0.90718474 0.00342857 - Au oz/ton - 0.0002 - Au g/t Au(oz/ton)*31.1035/0.90718474 0.00685715 - Au oz/ton - 0.003 - Au g/t Au(oz/ton)*31.1035/0.90718474 0.10285722 - Ag oz/ton - 0.01 - Ag g/t Ag(oz/ton)*31.1035/0.90718474 0.3428574 -

Note: DL = detection limit; Tr = trace; MoS2 = molybdenum disulphide


When IPL reported an assay in parts per million units, a factor of 0.0001 was used to convert the units to percentages (Table 12.6). When samples were analyzed at Loring, molybdenum was reported as molybdenum disulphide percent and was converted to molybdenum percent. All QA/QC samples were also removed from the database prior to the resource estimation calculation. Copper Fox and Cambria corrected all aforementioned discrepancies to Copper Fox’s database.

Since all assay values are included in the database, there were more than one set of assay results for all samples re-assayed at secondary lab. For the data used in the resource estimate, only one value could be used for each sample, and a consistent hierarchy in result selection was chosen based upon which lab was used. All results from AcmeLabs were used, and values from Loring were only used if there were no results from AcmeLabs. Additionally, results from Inspectorate-IPL were only used if there were no results from either AcmeLabs or Loring and original results from Teck and Paramount drilling were used if no other data was available (“UNKNOWN” column in database). This order of precedence was set based upon conclusions made by Cambria upon their examination of assay results. Due to overlapping intervals from a re-sampling program, 1865 samples were removed from the database. These samples were from the following drillholes; DDHAS-04, DDHAS-05, DDHAS-06, DDHAS-07, DDHAS-11, DDHAS-12, DDHAS-13, DDHAS-14, DDHAS-15, DDHAS-18, DDHAS-19, DDHAS-20, DDHAS-23, DDHSS-02, DDHSS-03, H68CH036, H68CH037, H68CH038, H68CH039, H68CH040, H68CH042, P69CHP05, P70CHP07, P70CHP08, P70CHP09, P70CHP6A, P71CHP10, and P72CHP11.

The dataset was imported into Gemcom GEMS™ and Datamine™ software, which have routines that check for duplicate intervals, overlapping intervals, and intervals beyond the length of the holes. No erroneous errors were identified within the routine.

1 2 . 2 T E T R A T E C H S I T E V I S I T

A site visit was conducted by Laura Karrei, P.Geo., a Tetra Tech Geologist, on February 5 and 6, 2012. The Property was visited during the afternoon of February 5, and the morning of February 6 with Cam Grundstrom, VP Operations of Copper Fox, and Anoush Ebrahimi, P.Eng., of Tetra Tech. Drilling was not occurring at the time, and the camp was temporarily re-opened for the duration of the site visit.

The Property (Figure 12.1 and Figure 12.2) and exploration camp (Figure 12.3) were visited, and approximately 600 m of core was examined by Ms. Karrei. Due to approximately 6 ft of snow covering the region, the deposit area was observed from the air via helicopter, and it was possible to only observe the collar casing of one drillhole.


Using a hand-held Garmin GPSmap 60CSx unit, a location reading was taken from the helicopter over the observed casing for drillhole 11CF-417. Considering that the waypoint was taken from a helicopter during high winds, and within the acceptable margin of GPS accuracy, the checked collar location was found to be consistent with the database and was within the Project area. The casing was capped and marked with a red flag (Figure 12.4).

Figure 12.1 Photo of Schaft Creek Deposit in Background

Note: Photo taken from exploration camp


Figure 12.2 Photo of Schaft Creek Deposit in Background

Note: Taken from exploration camp, GPS confirming exploration camp location

Figure 12.3 Aerial Photo of Exploration Camp


Figure 12.4 Photo of Collar Casing and Cap for Drillhole 11CF-417

Note: Photo taken from helicopter

A first aid station, kitchen, laundry, showers, dry, cabins, recreation room, and core logging and cutting facilities, are on site at the exploration camp. Electricity is produced from generators. Upon arrival in the camp, personnel receive a general orientation including an introduction to safety procedures and rules. Specific personal protective equipment (PPE) must be worn while performing certain tasks, and the requirements are summarized on a sign in the camp office (Figure 12.5).


Figure 12.5 PPE Requirements in Camp

Core is stored outdoors in core racks at the exploration camp, situated roughly 2 km from the deposit (Figure 12.6). At the time of the visit, there was one fully operational core shack (Figure 12.7) and the wooden frame of secondary core shack. The latter is used as a secondary logging facility during the drilling season when there is an overflow of core (Figure 12.8). Attached to one end of the primary core shack, there are three stations for core cutting saws (Figure 12.9).


Figure 12.6 Core Racks

Note: Photo taken from helicopter

Figure 12.7 Inside Primary Core Shack

Note: Shack is well-illuminated and stocked with core logging supplies


Figure 12.8 Secondary Core Shack

Note: Shack is covered with tarp during summer months and used when there is an overflow of

core

Figure 12.9 Three Core Cutting Stations Adjacent to Primary Core Shack


All core from drillhole 11CF-408 and select intervals containing mineralization representative of the deposit were examined. Checked intervals, which are listed in Table 12.7, were verified against the original logs and were generally found to be accurate. Core was either of NQ or HQ diameter. Since core-cutting facilities were not available at the time of the visit, and upon the request of Copper Fox to not take the remaining half core for check assaying, no rocks were collected for analysis. However, Tetra Tech obtained pulps/rejects of observed samples from AcmeLabs of Vancouver, and these were sent to Accurassay in Thunder Bay for check analysis. Accurassay is accredited under ISO/IEC Guideline 17025 from the SCC. Results are shown in Table 12.8.

Table 12.7 Intervals of Core Examined

Diamond Drillhole

From (m)

To (m)

Interval (m) Comments

05CF-248 300 320.00 20.00 - 07CF-313 63 88.00 25.00 - 08CF-327 20 43.00 23.00 - 10CF-398 35 50.00 15.00 - 11CF-408 0 377.04 377.04 Entire hole 11CF-409 134 152.00 18.00 - 11-CF-419 183 200.00 17.00 Geotech hole in Liard Zone 11CF-425 377 400.00 23.00 - T81CH160 12 54.00 42.00 Drilled by Teck T81CH223 35 70.00 35.00 Drilled by Teck Total 595.04 -


Table 12.8 Tetra Tech Check Samples (Pulps/Rejects)


The purpose of the check sample assays is to confirm indications of mineralization and are not intended as duplicate or QA/QC samples. Tetra Tech check sample analysis correlates well with Copper Fox’s assay results for the same sample intervals. That is, where elevated assay results were expected in the Copper Fox samples, the Tetra Tech samples returned similarly elevated assays results. It is Tetra Tech’s opinion that the analytical results have been confirmed and are adequate for the purposes of this technical report.

Core boxes are labeled with either a white tape or an aluminum tag, identifying the drillhole name, contained interval, and usually the box number (Figure 12.10). Corresponding to sampled intervals, sample tags are stapled in the box. Occasionally, such as for drillhole 05CF-248, the original sample tags are not present, but an aluminum tag marking the sample number is stapled to the box in at the corresponding location. Core recovery was observed to be variable but was generally poor to moderate. Core loss was not specifically noted in the logs, but the information is captured in the form of rock quality designation (RQD) data. Rock descriptions of individual samples are not recorded in the core logs. Some holes, such as 11CF-408 were noted to have been drilled using imperial measurements. One side of the wooden core blocks in the boxes stated the hole depth in feet, and the reverse side of the block showed the hole depth in metres. For this, a conversion factor of 0.3048 was used.

Figure 12.10 Labelled Core Boxes From Various Years of Drilling

Note: Poor core recovery also shown (broken ground)


Mineralization (chalcopyrite, bornite, molybdenite, and malachite) was observed in the form of disseminations, blebs, patches, within fractures and as stringers. Select samples illustrating this mineralization are provided in Figure 12.11 to Figure 12.17.

Figure 12.11 T81CH223 at 53 m – Bornite + Chalcopyrite, Core of NQ Diameter

Figure 12.12 08CF-327 Sample 147197 – Bornite, Pen for Scale

Note: Pen for scale


Figure 12.13 11CF-408 Sample 586481 – Stringers of Chalcopyrite

Note: Pen for scale

Figure 12.14 10CF-398 Sample 611051 – Malachite + Sulphides

Note: Pen for scale


Figure 12.15 11CF-409 Sample 1054565 – Disseminated and Blebby Sulphides (Pyrite > Chalcopyrite)

Note: Pen for scale

Figure 12.16 07CF-313 at 69 m – Disseminated and Blebby Sulphides (Chalcopyrite + Pyrite)


Figure 12.17 8CF-327 Sample 147199 – Disseminated Sulphides (Chalcopyrite + Pyrite)

Note: Pen for scale

Abundant molybdenum was also observed on a fracture surface in drillhole 11CF-408.

All pulps/rejects were delivered from the AcmeLabs, either in Vancouver or Smithers, to the Tetra Tech office in Toronto via Purolator. Samples were then examined in the Toronto office, and sent to Accurassay via Purolator. Samples were analyzed via list methods for each elements here. A copy of the Accurassay assay certificate for these check samples is provided in Appendix A.

No geologists were on site during the visit, and procedures were provided by the camp manager, who commenced working in the camp in 2010. During the drilling campaign, core was transported directly from the drill site to the camp on a daily basis via a Kubota. Core was logged by geologists from Cambria, and core boxes were custom made to be 1 m long in order to fit in the back of the buggy (Figure 12.1). In the core shack, there is a logging manual containing photos and descriptions of the various rock types, structures, and mineralization styles of the Property. The locations of drill core storage are recorded on a plan view map of the outdoor core racks, and all drilling activity records and maps are kept in the geology office. The camp manager office and the geology office are in the same building, and can be separated by a door with a lock.


1 3 . 0 M I N E R A L P R O C E S S I N G A N D M E T A L L U R G I C A L T E S T I N G

The majority of the following discussions have been extracted from Kulla et al. (2011), unless otherwise stated.

1 3 . 1 M E T A L L U R G I C A L T E S T W O R K

The information for the metallurgy was derived from the same information utilized for previous preliminary assessment (Bender et al. 2007) and preliminary feasibility study reports (Bender et al. 2008, as amended). This test work is summarized in [Table 13.1].

Table 13.1 Summary of Test Work

Year Laboratory Test Work Performed

1970-1971

Lakefield Research, Lakefield, Ontario

Very preliminary test work for Hecla

1981-1982

Lakefield Research, Lakefield, Ontario

Flowsheet development work for Teck Mining Group

2004 PRA, Richmond, BC PRA0402903 – Flotation development work from historical core and sample validation work

2005 PRA, Richmond, BC PRA0502002 – Flotation and grinding development work including locked cycle test work

2006 PRA, Richmond, BC PRA0603303 – Process development on 2005 core (four zones)

2006 Hazen Research, Golden, Colorado, USA

Preliminary comminution test work

2007 PRA, Richmond, BC PRA0701301 – Process development on 2006 core (three zones)

2007 Lehne & Associates, Germany

Mineralogical examination of drill core composites and metallurgical test products

2007 Hazen Research, Golden, Colorado, USA

Hazen 101515 – Drop weight comminution test work

2007 CESL, Richmond, BC Hydrometallurgical bench scale test work 2008 Polysius AG, Neubeckum,

Germany Preliminary HPGR test work

2008 G&T, Kamloops, BC KM2050 – Flotation response work from three different ore zones

2008 G&T, Kamloops, BC KM2136 – Advanced flowsheet development studies table continues…


Year Laboratory Test Work Performed

2009 G&T, Kamloops, BC KM2292 – Pilot plant work to produce bulk concentrate for engineering test purposes

2011-2012

G&T, Kamloops, BC KM3149 – rougher flotation, locked cycle testing by closed circuit flotation and concentrate quality

(Paramount Zone)

Note: Information contained in Table 13.1 was derived from Kulla et al. (2011) and Johnson and Shouldice (2012)

The testwork performed in 1970–71 and 1981–82 was not reviewed but the level of work is minor relative to the later work performed from 2004 onwards. All of the test work from 2005 onwards was conducted on drill core from the Schaft Creek 2005 and 2006 drilling programs. Copper Fox sent the samples from this drilling to PRA who originally performed much of the test work. Material was subsequently transferred to G&T who prepared it for further testing and for transfer to other test facilities. The emphasis of the test work was the Liard (Main) Zone which contains approximately 85% of the Mineral Resource with less work being performed on the Paramount Zone (approximately 14%) and the West Breccia Zone (1%).

Three types of metallurgical tests were implemented in these programs; Optimization Testing, Variability Testing, Comminution Testing (SAG and HPGR). The testwork is detailed in Bender et al. (2007) and Bender et al, (2008). It is briefly summarized in the sections below to provide support for the selection of the process criteria inputs used to assess reasonable prospects of economic extraction.

13.1.1 2005 PRA TEST WOR K ON LEGACY COR E

PRA conducted test work on historical core in 2005. This work was to determine the general responses of the material to typical copper processing methods and to see if reasonable results could be attained from historical core. Encouraging results were achieved indicating metallurgical recoveries that were typical of copper porphyry deposits could be achieved.

13.1.2 2005-2006 PRA TEST WORK ON 2005 DRILL COR E

Five composite samples were tested in this program which was created from core sourced from the 2005 drilling work. These composite samples were the Main Liard Zone (MLZ), West Liard Zone (WLZ), North Liard Zone (NLZ), West Breccia Zone (WBZ), Pit Composite (composed of equal portions of the four zones)

Preliminary work concentrated on establishing a basic flowsheet at a chosen grind of 160 μm. From this work, locked cycle test work was performed on all five samples. Results are included in [Table 13.2].


In addition, a pilot plant run was performed on 1,600 kg to generate sample for molybdenum separation work. This work went poorly and in subsequent analysis by Copper Fox’s consulting metallurgists it was noted that carbon contamination probably caused problems in the attaining molybdenite concentrate grade.

Table 13.2 Locked Cycle Results, PRA2005 Work

Sample

Bulk Concentrate Recovery Feed Grade

Cu (%)

Au (g/t)

Ag (g/t)

Mo (%)

Cu (%)

Au (g/t)

Ag (g/t)

Mo (%)

Cu (%)

Au (g/t)

Ag (g/t)

Mo (%)

MLZ 25.38 15.56 81.4 0.95 84.2 84.5 66.3 79.6 0.435 0.27 1.8 0.017 WLZ 34.21 33.44 129.6 1.24 71.8 75.9 62.5 61.1 0.355 0.33 1.5 0.015 NLZ 32.08 27.43 149.0 1.91 76.2 76.1 76.2 71.8 0.344 0.29 1.9 0.022 WBZ 24.60 10.30 122.1 1.24 82.7 78.0 74.8 79.8 0.421 0.19 2.3 0.027 Pit 25.54 15.93 112.1 1.36 84.8 78.4 60.6 78.4 0.457 0.30 2.8 0.026

Grade variability testing was also performed in 2005 by PRA. Twenty five open circuit tests were performed at grades varying from 0.146 to 1.253% cu. Recoveries typically were, 80%+ for copper, 60 to 90% for gold, 14 to 78% for silver, over 50% for molybdenum into the bulk concentrate. Recoveries typically were good when feed grade was high and recoveries suffered with a decrease in feed grade.

13.1.3 2006 HAZ EN TEST WORK ON 2005 DR ILL CORE (MATER IAL)

Comminution testwork was also performed at Hazen Research and this work is summarized in Table 13.3. These results suggest a moderately abrasive material which is hard.

Table 13.3 Comminution Testing, Hazen 2006 Work

Zone Ai Rwi Bwi

MLZ 0.25 24 22.4 WLZ 0.27 23.7 24.5 NLZ 0.18 24.1 24.1 WBZ 0.3 21.2 20.7

Average 0.25 23.3 22.9

Note: Abrasion index (Ai), Bond rod mill work index tests (Rwi), Bond ball mill work index tests (BWi)

13.1.4 CESL TESTWOR K ON 2005 DRILL COR E DERIVED MATER IAL

Approximately 3.5 kg of bulk concentrate from the 2005 work was tested by Cominco Engineering Services Ltd. (CESL) for amenability to processing by that method to cathode copper. Preliminary testing indicated that the concentrate would be amenable to the CESL process with yields from 96.0 to 98.8% Cu


extraction. Gold extraction varied from 50 to 90% depending on oxidation time with the recovery decreasing with pressure oxidation time. Silver extraction varied from 80% to over 90% with recovery increasing with pressure oxidation time.

13.1.5 2007 PRA TESTWOR K ON 2006 DR ILL CORE MATERIAL

Approximately 50 t of material was sent to PRA in February, 2007 and this was composed of 2006 core material. PRA tested 725 kg of this material and prepared another 6,000 kg for pilot plant testing. In addition, 90 kg of material from three zones were prepared for comminution testwork to be performed at Hazen Research.

From the 6,000 kg, PRA prepared a composite for each of the three resource areas. A fourth composite (Master) - was prepared with equal portions of the three zones. A primary grind of P80 = 100 μm was selected for all rougher and scavenger flotation locked cycle tests. Concentrates were reground to P80 = 20 to 25 μm. The results of the four locked cycle tests subsequently indicated a need to regrind the feed to the cleaner circuit to 15 μm in order to achieve both high concentrate grades and recoveries. Higher concentrate grades had been achieved for the 2005 drill core tests using a P80 of 15 to 20 μm. It was further indicated that a higher level of secondary material in the 2005 core may also have contributed to better performance with that material.

13.1.6 2007 HAZ EN TEST WORK ON 2006 DR ILL CORE MATER IAL

A series of tests were conducted to complete the design of the comminution circuit. Nine (45 total) 3 m intervals were selected from each of the five HQ drill holes to represent the upper, middle and lower sections of each hole. Samples from each individual hole were composited into composites each weighing approximately 90 kg representing the Liard, West Breccia and Paramount zones. These composites were tested by Hazen Research to determine the JKTech comminution parameters. The following tests were performed on each material; JKTech Drop Weight tests, JKTech SMC tests, JKTech Abrasion tests, Bond Crushing Index tests (CWi), Bond Rod Mill Work Index tests (RWi), Bond Ball Mill Work Index tests (BWi), Bond Abrasion tests. The mineralization from both a Bond and a JKSimMet viewpoint can be viewed as being “hard”.

13.1.7 2008-2009 G&T TEST WOR K ON 2006 DR ILL COR E MAT ER IAL

In 2008, it was decided to optimize the flow sheet and design parameters for the largest mineral resource zone, the Liard. For the optimization testing at G&T, it was decided to concentrate on the first 5 years of production at approximately 0.35% Cu. Therefore samples from a total of 42 three-m intervals were selected from 12 PQ drill holes from the 2006 drill program for these tests. The selected drill holes were distributed over the Liard Zone with the hole intervals being selected to represent the upper, middle and lower sections of the hole. The assays of the individual intervals ranged from less than 0.2% Cu to over 0.5%


copper for each hole with an average grade for samples from each hole of approximately 0.35% Cu. G&T then combined these samples into one 300 kg sample which assayed approximately 0.36% Cu.

The optimization work indicated an optimum grind of approximately 150 microns from the locked cycle testwork.

A second series of samples was selected based on grade and spatial variability. These were used to test the metallurgical variability of the Schaft Creek resource using the standard test conditions and flow sheet that was determined by the optimization tests. Samples from a total of 11 drill holes were selected for these tests. Ten of the drillholes were in the Liard Zone and one drill hole was selected from the Paramount Zone. A total of 34 three-metre drill-hole intervals were selected ranging in grade from less than 0.2% Cu to over 1.0% Cu.

These samples used for the grade variability testing were tested by open cycle tests. These tests indicated that it should be possible to make the final concentrate grade regardless of copper grade in the feed. Recoveries were found to be typically between 80 to 90%. Hardness was also evaluated and as in previous testwork was classified as hard to very hard. It was also seen that typically that gold recoveries followed copper recovery while there did not appear to be a copper silver relationship. These results are provided in detail in Bender et al. (2008).

A pilot plant was run on approximately 6.0 t of crushed drill core in a flotation pilot plant to produce a sufficient quantity of bulk concentrate to conduct bench-scale molybdenum separation testing. Approximately 35 kg of bulk concentrate was produced. Standard molybdenum separation conditions were employed. The bulk concentrates were processed in rougher flotation cells and, then, four stages of cleaner flotation were run in locked-cycle tests. The average grade of the final concentrate was approximately 47% molybdenum with a recovery of approximately 75% from the bulk concentrate. Since the major diluents in the molybdenum concentrate are liberated materials, it is anticipated that molybdenum concentrates containing a grade of at least 50% molybdenum can be realized.

13.1.8 2008-2009 POLYSIUS HPGR TESTWOR K ON 2006 DRILL COR E MATER IAL

As part of the comminution testing, a total of 35 drill-hole intervals were selected from seven drill holes in the Liard Zone for the HPGR tests. Each interval was crushed to approximately 25 mm and all the material was composited into one sample weighing approximately 250 kg. The Schaft Creek resource is a potential candidate for high pressure grinding roll (HPGR) technology as the material is hard and only moderately abrasive. This report was not available at the Report compilation date. AMEC notes that HPGR technology is not used within the base option of the process design.


13.1.9 2011-2012 ROU GH ER FLOT ATI ON TEST WORK

Metallurgical test work including rougher flotation, locked cycle testing by closed circuit flotation and concentrate quality was completed on six samples of mineralization from the Paramount zone in December 2011. A report released in January 2012 by Johnson and Shouldice (2012) summarizes the results. The test work on metallurgical performance was completed by G&T on six samples, totalling 810 kg. These samples were prepared using 80% passing 150 µm grind size, tested individually and then composited for similar test work. Results of the test work on the two master composite samples (with average copper grades of 0.42%) yielded average recoveries of 89% copper, 64% molybdenum, 73% gold and 58% silver. The concentrate produced averaged 31% copper, 1.30% molybdenum, 16 g/t gold and 131 g/t silver. The concentrate was low in other base metals and other common penalty elements (Johnson and Shouldice 2012). The results of this study will be combined with previous metallurgical test work to determine the estimated average metal recoveries to be used in the feasibility study that is expected to be completed in 2012.

1 3 . 2 P R O C E S S D E S I G N A S S U M P T I O N S

From Kulla et al. (2011):

The process design suggested in the 2008 pre-feasibility study was for a concentrator with a nominal processing capacity of 100,000 t/d. The concentrator design recommended in the study incorporated crushing, grinding, rougher flotation, rougher concentrate regrinding, and three stage cleaner stages to produce a bulk concentrate. A molybdenite separation circuit with roughers and five stages of cleaning was proposed to produce a molybdenite product. The gold and silver would report to the copper concentrate produced after the molybdenite concentrate. Copper, gold and silver would be sold to a smelter whereas the molybdenite concentrate would be tollroasted and sold. The rougher tails and the cleaner scavenger tails would be discharged to a tailings containment facility. The cleaner concentrate would be dewatered and shipped offshore to a smelter for refining.

1 3 . 3 R E C O V E R Y E S T I M A T E S


For the purposes of deriving parameters to inform reasonable prospects of economic extraction for the Mineral Resource estimate in Section 14, indicative recoveries of 86.5% copper were recommended, together with 73.3% for gold and 60.9% for molybdenum. A copper concentrate grade of 29% Cu and a molybdenite concentrate grade of 50% were proposed. For the model, operating costs of $5.12/t were advised.


1 3 . 4 M E T A L L U R G I C A L V A R I A B I L I T Y


Metallurgical response to variation across the mineralized zone was fairly consistent with typically acceptable results achieved for a wide range of feed grades and for locations across the main zone of mineralization (Laird). The following characteristics which would require close attention are:

• The mineralization being hard, the operating costs will be sensitive to the cost of power and grinding media and this characteristic of the deposit will have to be considered closely.

• With the requirement for a fairly fine regrind, this will be another factor which may contribute to a variation in recovery and concentrate grade across the mineralization.

1 3 . 5 D E L E T E R I O U S E L E M E N T S


No significant penalties have been indicated as being present in the concentrate and copper and molybdenum concentrates should be saleable.


1 4 . 0 M I N E R A L R E S O U R C E E S T I M A T E S

Previous resource estimates completed on the Property are discussed in Section 14.1. The current NI 43-101 resource estimate for the Property, with an effective date of May 23, 2012, supersedes all previous resource estimates, and is discussed in Sections 14.2 to 14.12.

1 4 . 1 P R E V I O U S R E S O U R C E E S T I M A T E S

The most recent significance resource estimates are from a prefeasibility study completed by Samuel Engineering in 2008 (Bender et al. 2008b), and an updated mineral resource estimate completed by AMEC in 2011 (Kulla et al. 2011).

Mineral resources were estimated for the prefeasibility study, and mineral reserves are summarized in Table 14.1. The prefeasibility study assumed a conventional truck-and-shovel open pit mining operation producing 100,000 t/d feeding a conventional flotation and concentrator plant to produce copper and molybdenum concentrates. Under the assumptions in the prefeasibility study, the Project was shown to have positive economics.

Table 14.1 Mineral Resource and Reserve Estimates

Mineral Resource Estimate Summary >=0.20 CuEq% Cut-off

Resource Category Tonnes

Cu (%)

Mo (%)

Au (g/t)

Ag (g/t)

CuEq Grade (%)

Measured 463,526,579 0.30 0.019 0.23 1.55 0.46 Indicated 929,755,592 0.23 0.019 0.15 1.56 0.36 Measured + Indicated 1,393,282,171 0.25 0.019 0.18 1.55 0.39 Inferred 186,838,848 0.14 0.018 0.09 1.61 0.25 Total 1,580,121,019 0.22 0.019 0.16 1.57 0.36

Proven and Probable Reserves

Reserve Category

ROM Ore (Mt)

ROM Diluted Grades

NSR ($/t)

Cu (%)

Au (g/t)

Ag (g/t)

Mo (%)

Proven 411.1 16.6 0.316 0.236 1.722 0.019 Probable 409.9 15.2 0.283 0.186 1.798 0.020 Total 821.1 15.9 0.299 0.211 1.760 0.020

Source: Bender et al. (2008b) Notes: ROM = run-of-mine

Mining parameters used are as follows: 110% mining dilution applied at the contact between ore and waste. 2Dilution grades are estimated at $4.63/t NSR, 0.076% copper, 0.088 g/t gold, 1.76 g/t silver and 0.005% molybdenum representing the average grade of material below the


incremental waste/ore cut-off grade. 35% mining loss. 4Waste/Ore Cut-off grade of $5.05/t NSR.

In 2011, AMEC completed a NI 43-101 compliant updated resource estimate (Table 14.2). The effective dates of the resource estimate and accompanying technical report were May 1, 2011, and July 26, 2011, respectively.

Table 14.2 Mineral Resource Estimate, Effective Date May 1, 2011

Mineral Resource Estimate Summary – 0.12% CuEq Cut-off Grade

Category Tonnage

(Mt) Cu (%)

Mo (%)

Au g/t

CuEq (%)

Contained Metal

Cu (Mlb)

Mo (Mlb)

Au (Moz)

Measured 40.4 0.36 0.023 0.24 0.61 319.9 20.5 0.32 Indicated 994.9 0.27 0.017 0.17 0.44 5,854.5 365.7 5.55 Total Measured + Indicated 1,035.3 0.27 0.017 0.18 0.45 6,174.4 386.2 5.87 Inferred 301.3 0.24 0.011 0.14 0.37 1,562.1 70.3 1.38

Source: Kulla et al. (2011)

Notes: 1Mineral Resources base case is reported at a 0.12% copper equivalent cut-off grade; this cost incorporates considerations of process cost, recoveries, commodity price and selling cost. 2Mineral Resources are reported as undiluted. 3A Lerchs-Grossman pit shell was used to constrain the Mineral Resources to assess reasonable prospects of eventual economic extraction using pit slopes of between 40 to 44°, and total mining costs of US$5.12/t milled, and variable recoveries, averaging 86.5% copper, 73.3% gold, and 60.9% molybdenum. 4Mineral Resources are reported using a long-term copper price of US$2.90/lb, a gold price of US$1,200/oz and a molybdenum price of US$15.95/lb. 5Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content. 6Tonnage and grade measurements are in metric units. Contained gold ounces are reported as troy ounces, contained copper pounds are imperial pounds.

During 2010, Copper Fox commissioned Tetra Tech to manage a feasibility study, which is expected to be completed in 2012. The accompanying resource estimate will be used for this study, and as a consequence, Copper Fox is treating the prefeasibility study and previous resource estimates as historic.

1 4 . 2 I N T R O D U C T I O N

The following sections describe and discuss the Schaft Creek deposit resource estimate. The resource estimate includes:

• review of geological and assay data provided by Copper Fox

• geological interpretation and domaining of the mineralization

• application of the interpretation in the form of designed domain wireframes

• assessment of the data with respect to the different geological domains


• construction and configuration of a suitable block model

• interpolations of attributes (grade, density, etc.) into cells of the block model

• verification and validation of the interpolations

• reporting the mineral resource.

14.2.1 GEOLOGIC AL INT ER PRET ATION

The Schaft Creek Mine mineralization represents a porphyry copper deposit with associated molybdenum, gold and silver mineralization. The Schaft Creek deposit has been modelled into two zones; the Liard Zone and the Paramount Zone

For the purposes of this work, Datamine™ resource software (v. 3.20.6420.0) was employed to analyze data, create associated wireframes of mineralization, subsequent block modeling and grade interpolation. A Datamine™ macro program was written to create a desurveyed drillhole file and geological block model, assign cell attributes and interpolate of grade into cells. This macro is presented in its entirety as Appendix C.

1 4 . 3 D A T A

Data was provided by Copper Fox as a series of comma separated (.csv) text files to replicate diamond drillhole collar, survey, geology and assay data. After separate verification and validation, all data were imported into Datamine™ software and desurveyed to create an appropriate drillhole files for geological interpretation and grade estimation.

Copper Fox also provided critical wireframes to assist in modeling the deposit. As required, these wireframes were imported and verified in Datamine™ software prior to implementation into the block model. These wireframes include, but are not limited to:

• surface topography, digital terrain models (DTMs)

• geological solid wireframes.

Additional wireframes provided by Copper Fox included geological interpretations of the position and extent of individual units. These were also imported into Datamine™ software, and were used as a guide in developing an independent interpretation by Tetra Tech of the main zones of mineralization for the resource estimate. The final mineralization model employed in the Schaft Creek resource model was designed, developed and verified by Tetra Tech.


1 4 . 4 D O M A I N S

The Schaft Creek deposit is separated into two broad domains; the Liard Zone to the southwest and the Paramount Zone to the northeast. These two domains are separated by a northeast-southwest trending sub-vertical fault.

The mineralization within these two domains was captured by means of a 0.25% copper equivalent wireframe configured using Leapfrog™ software (v. 2.4.5.17). This wireframe was subsequently imported as a .dxf file and simplified as a Datamine™ solid wireframe.

In general, the Paramount Zone displays mineralization oriented north northwest-south southwest while the Liard Zone shows mineralization in a number of different orientations.

14.4.1 WIR EFR AMES

The wireframes used in the Schaft Creek resource modelling and estimation are tabulated in Table 14.3.

Table 14.3 Wireframes used in the Resource Model

Name Type Orientation Approximate

Size Purpose Source

topotr/pt DTM Planar 4 km x 3 km Topographic surface Cambria base_ovbtr/pt DTM Planar 4 km x 3 km Base of Overburden Cambria Liard_cueq025tr/pt Solid Circular? 500 ft x 310 ft Liard Zone Tetra Tech para_cueq025tr/pt Solid Strike 59°, dip -70° SE 165 ft x 250 ft Paramount Zone Tetra Tech hfld1tr/pt Solid Strike 18°, dip -73° SE 350 ft x 380 ft Alteration Zone 1 Cambria hfld2tr/pt Solid Strike 38°, dip -54° SE 350 ft x 510 ft Alteration Zone 2 Cambria

The topographic DTM and the base of overburden DTM were supplied by Cambria of Vancouver, BC. These wireframes were used to define the overburden and the topographic surface of the resource model.

The limits of mineralization of the deposit were defined by two 0.25 CuEq% cut-off grade shell solid wireframes generated by Tetra Tech in Vancouver, utilizing Leapfrog™ software.

A plane dipping shallowly to the west (dip 24.83°, dip azimuth 294.94°, pitch 152.87°), and a plane dipping moderately to the east (dip 67.02°, dip azimuth 88.05°, pitch 104.27°) were chosen to best represent the planes of preferred mineralization for the Liard and Paramount Zones, respectively. For both wireframes, a Gaussian Grade Transformation was employed, using all available sample data. For the variogram parameters, a spheroidal model was chosen, with a nugget of 0.4, sill of


1.0, and range of 200.0 m. For exploratory purposes, grade shells using a CuEq% cut-off of 0.15%, 0.2%, 0.25%, 0.3% and 0.6% were generated.

To determine the boundary between the Liard and Paramount Zones, a map of local geology (Figure 4-2 of Kulla et al. 2011) containing a fault through the deposit area (shown as dashed black line in Figure 14.1) was draped onto the topography. Draping this line and bending it slightly southwards to fit the contact between the Hickman intrusive rocks and the wedge of mafic volcanic rocks created a plausible dislocation between the two zones. Based on the geological environment, sub-vertical structures are to be expected, trending roughly north-south, and the fault was therefore extrapolated accordingly at depth. Using this divide, the West Breccia Zone has been modelled as part of the Liard Zone.

Figure 14.1 Illustration of Local Geology Map Draped onto Topography – Divide Between Liard and Paramount Zones

Initially, the most plausible cut-offs for appropriate grade shells were thought to be 0.2 CuEq% for Paramount and 0.25 CuEq% for Liard. If a 0.2 CuEq% cut-off was chosen for Liard, the deposit would have been overly extended with vague boundaries only driven by the existence of data. This suggests that the bottom of the deposit has not been defined by drilling, and that the mineralization is still open at depth. Additionally, the 0.25 CuEq% cut-off grade shells have plausible envelopes that may relate to the alteration and mineralization patterns. For these reasons, cut-off grade shells of 0.25 CuEq% were used in the resource estimation.


The wireframes generated in Leap Frog™ were subsequently modified by Tetra Tech in Toronto for use in Datamine™ software. Modifications included removing extra external and interior solids, smoothing out inconsistencies in the wireframe and patching any triangle voids. The resulting solids are illustrated in Figure 14.2.

Cambria also provided solid wireframes defining fault planes, alteration zones and breccia zones. The alteration zones (Hfld1 and Hfld2) represent two disconnected iron-stained feldspathic alteration bodies that were interpreted from filtered 3D data of coded alteration, at 50 m spaced level plans (Figure 14.2). These zones were incorporated into the Datamine™ resource model and cells within were assigned a categorical attribute. The breccia wireframe, although initially used in an earlier resource estimate to define the limits of mineralization, was not used in the resource model.


Figure 14.2 Plan View Map of 0.25 CuEq% Grade Shells (Paramount and Liard Zones) and Alteration Wireframes (Hfld1 and Hfld2)

Note: Drillhole collars and traces are illustrated by grey circles and lines, respectively.


1 4 . 5 E X P L O R A T O R Y D A T A A N A L Y S I S

The following discussion describes the data used in the Schaft Creek resource estimate. It outlines the data statistics for respective domains; methodology used to identify and control the influence of outlier data and compositing data to maintain consistency in the estimation process.

14.5.1 SCATTER PLOT S

Only copper, molybdenum, gold and silver were considered in the assay database for resource estimation. As is expected in porphyry copper deposits, the correlation between copper and gold is very high with a correlation coefficient of 0.768. Copper-molybdenum and copper-silver also have relatively high correlation coefficients (greater than 0.6), indicating that mineralization of different metals was concurrent. However, molybdenum-gold and molybdenum-silver have a less pronounced correlation coefficient, indicating that molybdenum mineralization was somewhat independent of both silver and gold. The positive correlation between metals confirms that only one metal domain is required for estimating all metals.

Figure 14.3 to Figure 14.6 show the scatter plots of copper-molybdenum, copper-gold and copper-silver, respectively.

Figure 14.3 Log Normal Scatter Plot of Cu (%) and Au (g/t) from Composited Drillhole Data

Note: The blue line depicts the polynomial regression curve of copper versus gold and the

magenta line depicts the diagonal (X=Y). The data reflects a very high correlation (0.768).


Figure 14.4 Log Normal Scatter Plot of Cu (%) and Mo (%) from Composited Drillhole Data

Note: The blue line depicts the polynomial regression curve of copper versus molybdenum and

the magenta line depicts the diagonal (X=Y). The data reflects a high correlation (0.615).

Figure 14.5 Log Normal Scatter Plot of Cu (%) and Ag (g/t) from Composited Drillhole Data

Note: The blue line depicts the polynomial regression curve of copper versus silver and the

magenta line depicts the diagonal (X=Y). The data reflects a high correlation (0.633).


Figure 14.6 Log Normal Scatter Plot of Ag (g/t) and Au (g/t) from Composited Drillhole Data

Note: The blue line depicts the polynomial regression curve of silver versus gold and the

magenta line depicts the diagonal (X=Y). The data reflects a high correlation (0.621).

14.5.2 QUANT ILE-QUANT ILE PLOTS

In order to compare historic and more recent assay results, assay percentiles were calculated at 5%, 10%, 20%, 30%, 40%, 50%, 60%,70%, 80%, 90%, and 95% for each of the modelled elements. Quantile-quantile (QQ) plots were then generated and are presented in Figure 14.7 to Figure 14.10.


Figure 14.7 QQ Plot for Cu (%) – Comparison of Historic and Non-historic Assay Results

Figure 14.8 QQ Plot for Au (g/t) – Comparison of Historic and Non-historic Assay Results


Figure 14.9 QQ Plot for Mo (%) – Comparison of Historic and Non-historic Assay Results

Figure 14.10 QQ Plot for Ag (g/t) – Comparison of Historic and Non-historic Assay Results


It was observed that there was a slight bias for higher copper and molybdenum grades in the historic holes, and very little to no bias for gold and silver grades. The slight differences that were observed were deemed to be sufficiently minor to warrant using historic drill results in the resource estimate calculation.

14.5.3 ASSAYS AN D ST ATIST IC S

All data provided represents results of diamond drilling. Summary statistics for these data for the Liard and Paramount Zones are provided in the Table 14.4 and Table 14.5.

Table 14.4 Raw Assay Statistics for Liard Zone

Cu (%)

Mo (%)

Au (g/t)

Ag (g/t)

CuEq (%) Density

Count 16,662 16,635 12,582 12,573 12,560 2,174 Minimum - - 0.003 0.050 0.004 0.220 Maximum 4.503 2.872 20.86 300.0 10.41 19.63 Mean 0.283 0.016 0.219 1.732 0.482 2.698 Variance 0.049 0.001 0.097 9.806 0.133 0.187 Standard Deviation 0.222 0.034 0.311 3.131 0.364 0.433 Coefficient of Variance 0.785 2.168 1.423 1.808 0.756 0.160

Table 14.5 Raw Assay Statistics for Paramount Zone

Cu (%)

Mo (%)

Au (g/t)

Ag (g/t)

CuEq (%) Density

Count 8,755 8,755 8,165 8,168 8,165 343 Minimum 0.001 0.000 0.003 - 0.004 0.260 Maximum 3.628 0.588 10.834 200 5.896 26.75 Mean 0.293 0.022 0.174 1.869 0.469 2.799 Variance 0.063 0.001 0.094 13.503 0.150 3.414 Standard Deviation 0.251 0.031 0.307 3.675 0.387 1.848 Coefficient of Variance 0.858 1.412 1.767 1.966 0.825 0.660

14.5.4 OUTLIER MANAGEMENT AND CAPPIN G STR ATEGY

For sample outlier population management, the entire dataset was considered. The paragenesis of the deposit did not differ between the Paramount Zone and the Liard Zone. Furthermore, the entire dataset provided sufficient samples to adequately interrogate the statistics for capping. Histograms and lognormal plots were used to identify outlier sample populations. These populations were subsequently confirmed not to form independent volumetrically discrete high-grade domains. The following discussion provides a synopsis of this management strategy.


COPPER

A top-cut or “cap” of 1.8% was chosen for copper. Out of 25,398 samples with assays, 39 are greater than 1.8% copper, or 0.122% of the sample population. Figure 14.11 depicts the characteristics of the total copper grade distribution within the Paramount and Liard Zones combined. Note the lognormal deviation of the high grade samples around the 1.8% copper position.

Figure 14.11 Raw Data Histogram, Lognormal Distribution Curve and Summary Statistics for Copper


MOLYB DEN UM

A top-cut or “cap” of 0.25% was chosen for molybdenum. Out of 25,382 samples with assays, 63 are greater than 0.25% molybdenum, or 0.248% of the sample population. Figure 14.12 depicts the characteristics of the total molybdenum grade distribution within the Paramount and Liard Zones combined. Note the lognormal deviation of the high-grade samples around the 0.25% molybdenum position.

Figure 14.12 Raw Data Histogram, Lognormal Distribution Curve and Summary Statistics for Molybdenum


GOLD

A top-cut or “cap” of 2.0 g/t was chosen for gold. Out of 20,746 samples with assays, 33 are greater than 2.0 g/t gold, or 0.159% of the sample population. Figure 14.13 depicts the characteristics of the total molybdenum grade distribution within the Paramount and Liard Zones combined. Note the lognormal deviation of the high grade samples around 2.0 g/t gold position.

Figure 14.13 Raw Data Histogram, Lognormal Distribution Curve and Summary Statistics for Gold


SILVER

A top-cut or “cap” of 18 g/t was chosen for silver. Out of 20,746 samples with assays, 20 are greater than 18 g/t silver, or 0.096% of the sample population. Figure 14.14 depicts the characteristics of the total molybdenum grade distribution within the Paramount and Liard Zones combined. Note the lognormal deviation of the high grade samples around 18 g/t silver position.

Figure 14.14 Raw Data Histogram, Lognormal Distribution Curve and Summary Statistics for Silver


A summary of the statistics on the capped drillhole data for both the Liard and Paramount Zones are listed in Table 14.6 and Table 14.7. Table 14.8 shows a comparison between uncapped (raw) and capped data for copper and molybdenum.

Table 14.6 Raw Assay Statistics for Liard Zone; Capped Data

Cu (%)

Mo (%)

Au (g/t)

Ag (g/t)

CuEq (%) Density

Count 16,662 16,635 12,582 12,573 12,560 2,157 Minimum - - 0.003 0.050 0.004 1.920 Maximum 1.800 0.250 2.000 18 10.409 3.750 Mean 0.282 0.015 0.215 1.704 0.482 2.695 Variance 0.045 0.001 0.048 2.499 0.133 0.007 Standard Deviation 0.213 0.023 0.218 1.581 0.364 0.084 Coefficient of Variance 0.756 1.503 1.014 0.928 0.756 0.031

Table 14.7 Raw Assay Statistics for Paramount Zone; Capped Data

Cu (%)

Mo (%)

Au (g/t)

Ag (g/t)

CuEq (%) Density

Count 8,755 8,755 8,165 8,168 8,165 339 Minimum 0.001 0.000 0.003 - 0.004 1.660 Maximum 1.800 0.250 2.000 18 5.896 2.890 Mean 0.291 0.022 0.169 1.812 0.469 2.653 Variance 0.056 0.001 0.053 3.322 0.150 0.010 Standard Deviation 0.237 0.029 0.231 1.823 0.387 0.102 Coefficient of Variance 0.814 1.306 1.361 1.006 0.825 0.038

Table 14.8 Comparison of Capped and Uncapped Cu% and Mo%

Cu%

Uncapped Cu%

Capped Mo%

Uncapped Mo%

Capped

Liard Zone Count 16,662 16,662 16,635 16,635 Minimum - - - - Maximum 4.503 1.800 2.872 0.250 Mean 0.283 0.282 0.016 0.015 Variance 0.049 0.045 0.001 0.001 Standard Deviation 0.222 0.213 0.034 0.023 Coefficient of Variance 0.785 0.756 2.168 1.503 Paramount Zone Count 8,755 8,755 8,755 8,755 Minimum 0.001 0.001 0.000 0.000

table continues…


Cu%

Uncapped Cu%

Capped Mo%

Uncapped Mo%

Capped

Maximum 3.628 1.800 0.588 0.250 Mean 0.293 0.291 0.022 0.022 Variance 0.063 0.056 0.001 0.001 Standard Deviation 0.251 0.237 0.031 0.029 Coefficient of Variance 0.858 0.814 1.412 1.306

14.5.5 DRI LLH OLE C OMPOSIT IN G

The majority of raw sample lengths used for assaying measured 1, 2, or 3 m in length. Figure 14.15 illustrates the descriptive statistics on the sample lengths.

Figure 14.15 Histogram of Raw Sample Length (m)

In order to capture most of the sample lengths into a consistent composite, while maintaining sufficient resolution and maximising the number of composited samples available for grade interpolation, a composite length greater than 3 m was required. Thus, a 4 m composite length was used in this resource estimate. Compositing honoured the Liard (rock=3) and Paramount (rock=4) boundaries.

1 4 . 6 D E N S I T Y

Density (or specific gravity (SG) recorded as t/m3) measurements were completed on 2,838 drill core samples. Of these, 2,516 drill core samples occur within the


combined Paramount and Liard Zones. The histogram and summary statistics for these measurements are tabulated in Figure 14.16. Due to the extreme range of SG values, it was assumed that any measurements above 3.8 and below 1.5 were removed from the dataset. There are 15 measurements with SG below 1.8 and 8 measurements with SG greater than 3.8.

The density model for the Schaft Creek deposit was estimated to the block model by means of ID2 interpolation method. Any fresh rock cells that failed to be interpolated were assigned the average SG value of 2.69. Cells recognized as overburden were assigned a SG of 2.0.

Figure 14.16 Histogram of Density (SG)

1 4 . 7 S P A T I A L A N A L Y S I S

14.7.1 VARIOGR APHY

Data for experimental variography was restricted to those samples which fell within the 0.25 CuEq% indicator wireframes for both the Liard and Paramount Zones. These experimental variograms were constructed on lags which are multiples of the 3 m composites (12 and 15 m) using Isatis™ software (v. 2011.4).

The preferred orientation for the variography of both the Liard and Paramount Zones has the long-axis positioned north-south as defined in Figure 14.17.


Figure 14.17 Variography Orientation used in both the Liard and Paramount Zones

Copper, silver, gold and molybdenum were modeled with cross-variograms between the various elements as well as the individual element variograms as depicted below for the Liard Zone (Figure 14.18) and for the Paramount Zone (Figure 14.19). A simple approach was adopted, nugget plus sill. The solid red lines reflect the variography modeled in a vertical north-south plane (more continuity is expected in this plane on geological grounds), while the broken purple lines show the variography modeled at right angles to that plane.

A more detailed depiction of this variography can be found in Appendix D. Tabulation of the modelled variography is presented in Section 14.8.3.


Figure 14.18 Experimental Variography for the Liard Zone – Summary Variography

Note: See Appendix D for details


Figure 14.19 Experimental Variography for the Paramount Zone – Summary Variography

Note: See Appendix D for details


1 4 . 8 I N T E R P O L A T I O N P L A N – K R I G I N G P A R A M E T E R S

For block model estimation in Datamine™ software, three separate parameter files are required:

• estimation parameter file

• search and sample selection parameter file

• variography parameter file.

Estimation also included the calculation of the Kriging Variance, the Lagrange Multiplier and the F-Function. These calculations were undertaken in order to calculate the Z/Z* and the KE. Both Z/Z* and KE are used to evaluate the quality of the OK estimate, and Z/Z* in particular was used to determine resource classification.

14.8.1 ESTIMATION PARAMET ER FILE

The estimation parameter file defines the domains used (i.e. rock 3 and 4), estimation variables (e.g. copper, molybdenum, gold, and silver), and estimation method (e.g. OK, ID2, and nearest neighbour (NN)). OK results are used in reporting the resource, whereas ID2 is used for density. Other interpolations (i.e. ID2, NN) methods are used for model validation. The estimation parameter file is tabulated in Table 14.9.

14.8.2 SEAR CH AND SAMPLE PARAMETER FILE

The search and sample parameter file dictates the conditions for a successful cell interpolation of grade. It specifies the sample search ellipse parameters including size and orientation. In this case, they reflect the variography. It also states the number of samples required for a successful interpolation based on the search and search pass (maximum of three passes with search distances expanding by a factor of two for the second pass and a factor of three for the third pass). The maximum number of samples which can be used from a single composited drillhole is set to three. This is not dissimilar (total of 12 m of samples per drillhole) to the interpolation conditions set by Kulla et al.’s 2011 (AMEC) resource estimate, which uses 15 m composites. The search and sample parameter file is tabulated below (Table 14.10).

14.8.3 VARIOGR APHY PAR AMET ER FILE

The variography parameter file specifies the nugget, structure ranges and orientations for respective structure variance for each of the estimated metals. Note no variography was undertaken for density. The variography parameter file is tabulated below (Table 14.11).


Table 14.9 Estimation Parameter Files

Note: KRIGVARS – KV set equal to sill. KRIGNEGW – keep and use negative Kriging weights


Table 14.10 Search and Sample Parameter Files

Note: MAXKEY – Maximum number of samples used from single drillhole.


Table 14.11 Variography Parameter Files


1 4 . 9 R E S O U R C E B L O C K M O D E L

14.9.1 CONFIGUR ATION

The block model is oriented with the model origin at the lower left hand corner (bottom southwest) where all dimensions are in metres. Cell and sub-cell sizes configuration was designed to reflect minimum mining widths and heights. The block model configuration is recorded in Table 14.12. Sub-cells were used to define the topographic surface and the base of overburden.

Table 14.12 Block Model Configuration

Easting (m)

Northing (m)

Elevation (m)

Origin 11,000 8,800 4,300 Parent cell 15 15 15 Number of Parent cells 200 267 120 Sub-cell 5 5 5 Number of Sub-cells per Parent cell 3 3 3

14.9.2 CELL ATT RIBUTES

Categorical and deterministic variables for the cells of the block model are tabulated in Table 14.13. Categorical variables include, but are not limited to, rock type (fresh rock, overburden and mineralization domains (rock), resource classification (rescat) and mining status (mstatus). Deterministic variables include, but are not limited to, copper, molybdenum, gold, and silver grade estimation.

Table 14.13 List of Cell Attributes in Block Model

Name Description Type Association

IJK Unique parent cell code Integer Assigned rock Domain2 (1-4) Integer Assigned XC Cell centroid (x) Variable Assigned YC Cell centroid (y) Variable Assigned ZC Cell centroid (z) Variable Assigned

XINC Cell length (x) Variable Assigned YINC Cell width (y) Variable Assigned ZINC Cell height (z) Variable Assigned ZONE Datamine default (not used) Integer Assigned rescat Resource classification (1-3) Integer Assigned

mstatus Mining Status (1) Integer Assigned density Specific Gravity (ID2) Variable Assigned cu_ok Cu grade (OK) Variable Estimated

table continues…


Name Description Type Association

cu_id Cu grade (ID2) Variable Estimated cu_nn Cu grade (NN) Variable Estimated

F Cu (F-Function) Variable Estimated LG Cu (LaGrange Multiplier) Variable Estimated

mo_ok Mo grade (OK) Variable Estimated mo_id Mo grade (ID2) Variable Estimated mo_nn Mo grade (NN) Variable Estimated au_ok Au grade (OK) Variable Estimated au_id Au grade (ID2) Variable Estimated au_nn Au grade (NN) Variable Estimated ag_ok Ag grade (OK) Variable Estimated ag_id Ag grade (ID2) Variable Estimated ag_nn Ag grade (NN) Variable Estimated sg_nn Specific Gravity (NN) Variable Estimated

NUMSAM Number of Samples for Estimate Integer Calculated SVOL Search Estimate Pass (1-3) Integer Calculated

MINDIS Sample Distances for Estimate Variable Calculated KV Cu Kriging Variance Variable Calculated BV Cu Block Variance Variable Calculated KE Cu KE Variable Calculated

Z/Z* Cu Z/Z* Variable Calculated cu_eq Cu Equivalent (Cu + Mo + Au + Ag) Variable Calculated

XMORIG Block Model Origin (x) Integer Assigned YMORIG Block Model Origin (y) Integer Assigned ZMORIG Block Model Origin (z) Integer Assigned

NX Number of Cells (x) Integer Assigned NY Number of Cells (y) Integer Assigned NZ Number of Cells (z) Integer Assigned

14.9.3 INTER POLATION

Block model interpolation utilized OK for estimation of copper, molybdenum, gold and silver grades. ID2 and NN were also employed block model validation purposes.

The following discusses the results of the interpolation, both in terms of block model validation (Section 14.9) and in tabulation of the mineral resource (Section 14.11).

1 4 . 1 0 M O D E L V A L I D A T I O N

14.10.1 STATIST IC S

Block model statistics for all elements of the block model are tabulated in Table 14.14 and Table 14.15, both for the total modelled resource and the un-mined portion


of the modelled resource. The statistics are reported as a function of the interpreted Liard and Paramount Zones.

Table 14.14 Assay Statistics for Liard Zone; Composite Data

Cu (%)

Mo (%)

Au (g/t)

Ag (g/t)

CuEq (%) Density

Count 156501 156501 156501 156501 156501 156501 Minimum 0.002 0 0 0 0.014 2.395 Maximum 1.246 0.161 1.054 7.284 1.816 3.033 Mean 0.229 0.013 0.182 1.569 0.359 2.692 Variance 0.011 0.000 0.009 0.350 0.023 0.001 Standard Deviation 0.107 0.009 0.095 0.591 0.151 0.030 Coefficient of Variance 0.467 0.727 0.522 0.377 0.420 0.011

Table 14.15 Raw Assay Statistics for Paramount Zone; Composite Data

Cu (%)

Mo (%)

Au (g/t)

Ag (g/t)

CuEq (%) Density

Count 93622 93622 93622 93622 93622 93622 Minimum 0.036 0.001 0 0 0.074 2.374 Maximum 1.066 0.121 0.971 5.664 1.626 2.860 Mean 0.273 0.021 0.172 1.812 0.427 2.690 Variance 0.010 0.000 0.012 0.294 0.024 0.001 Standard Deviation 0.100 0.010 0.111 0.542 0.156 0.031 Coefficient of Variance 0.364 0.501 0.644 0.299 0.366 0.012

14.10.2 SECTION S

The results of the grade interpolation were visually confirmed against corresponding cross-sections and plan views. Figure 14.20 to Figure 14.23 depict the block model grades against the composited and capped drillhole (i.e. ore1_tc-c.dm) grades used in the resource estimation. These sections confirmed good correlation between modeled grade and drillhole grade.

Images include drillhole data, coloured also by grade, and are clipped to 50 m. Depicted below are representative images of the Liard and Paramount Zones. A complete set of images is contained in Appendix E.


Figure 14.20 Model Plan View Liard Zone at 850 m Elevation – Cu% Grade

Note: Drillholes also depicted. Total section clipping distance is 50 m.


Figure 14.21 Model Plan View Paramount Zone at 850 m Elevation – Cu% Grade

Note: Drillholes also depicted. Total section clipping distance is 50 m.


Figure 14.22 Model Cross-section View Liard Zone at 639500 mN – Cu% Grade


Figure 14.23 Model Cross-section View Paramount Zone at 6361000 mN – Cu% Grade

14.10.3 SWATH PLOT S

Swath plots are used to visually compare the differences and similarities in the estimated grades between the different estimators (OK, ID2 and NN) with respect to each domain (Liard and Paramount). The search and sample estimation parameter file used for ID2 and NN estimation is the same as that for the OK estimation. Results are presented below for copper, molybdenum, gold, silver and density in the


form of average grades recorded across eastings, northings and elevations. Note that as no OK estimation was completed for density, only ID2 and NN are compared.

Below (Figure 14.24 to Figure 14.26) are presented examples of the results of the swath plots. A complete set of all swath plots can be found in Appendix F. Note that for the purposes of these plots, the Liard Zone and the Paramount Zone were not separated. All mineralization was considered as a single domain.

Figure 14.24 Swath Plot for Cu% by Easting


Figure 14.25 Swath Plot for Cu% by Northing

Figure 14.26 Swath Plot for Cu% by Elevation

In general, from interrogation of the above images, it can be concluded that there is good correlation between OK and ID2 grade interpolators. The NN interpolation will always be problematic as there is no averaging of grades. It should also be noted that variability along the margins of the deposit, where there is little sample support, is inevitable.


1 4 . 1 1 M I N E R A L R E S O U R C E C L A S S I F I C A T I O N

14.11.1 INTRODUCTION

Mineral resource classification is the application of Measured, Indicated and Inferred categories, in order of decreasing geological confidence, to the resource block model. These are CIM definition standards (adopted by the CIM Council on December 11, 2005) for reporting on mineral resources and reserves, which were incorporated by reference in NI 43-101.

A Measured Mineral Resource is that part of the total resource for which the physical characteristics are well established that it can be used for production planning and economic evaluation. Data is sufficient enough to confirm both geological and grade continuity. An Indicated Mineral Resource is that part of the total resource for which the physical characteristics are well established that it can be used production planning and economic evaluation. Data is sufficient enough to reasonably assume both geological and grade continuity. An Inferred Mineral Resource is that part of the total resource for which the quantity and grade can be estimated. Data is sufficient enough to reasonably assume, but cannot verify, geological and grade continuity.

These categories are applied in consideration of, but not limited to, drill and sample spacing, QA/QC, deposit-type and mineralization continuity, surface and/or underground mineralization exposure, variography, KE, Z/Z* and/or prior mining experience. With respect to resource classification of the Schaft Creek deposit, Kulla et al. (2011) pre-classified resource model cells on the basis of sample distance to interpolated cell. In addition, they took into consideration “higher confidence” drillholes for assigning Measured Resource classification.

In this resource model, the Z/Z* is exclusively used to assign resource classification.

14.11.2 THEOR ETICAL SLOPE OF REGR ESSION

Conditional bias is the systematic under- and over-valuation of block estimates in different grade categories (see Figure 14.27). Krige (1996) presented a practical analysis of the effects of spatial continuity and the available data within the search ellipse as it affects measures of conditional bias.


Figure 14.27 Actual Value (Z) Versus Estimated Value (Z*), Slope of Regression is Expressed as Z/Z*

The two parameters Krige suggested using to investigate whether the block size used for grade estimation is appropriate are KE (KE as a percentage) and Z/Z* which can also be used to calibrate the confidence in block estimates and are given as follows:

KE = (BV-KV)/BV

Z/Z* = BV-KV+ |μ|

Where:

BV = theoretical variance of blocks within domain

KV = variance between Kriged grade and true (unknown) grade, i.e. kriging variance

μ = LaGrange multiplier

Perfect estimation would give values of KV = 0, KE = 100% and Z/Z* = 1.

Confidence in the geological framework is all-important and generally takes precedence over any mathematical indicator of confidence. However, KE and Z/Z* can be used to identify “challenged” estimated areas within a specified resource classification which require further investigation. Ultimately, KE and Z/Z* are both tools to be used in conjunction with block size, drill spacing, mineralization continuity and geological confidence.

With respect to the Schaft Creek resource model, the LaGrange multiplier and F-Function were estimated into each cell as a function of the copper drillhole data and


associated variography. Thus drill spacing, sample support and variography all were intrinsically involved in the assigning of resource classification. The Measured category was assigned to all cells with Z/Z* greater than 0.95. All cells with Z/Z* greater than 0.25, but less than 0.95, were assigned Indicated resource category. The Inferred resource category was assigned to all cells with Z/Z* less than 0.25. Thus the resource classification reflects more the quality and confidence of the block estimate.

The difficulty in using this methodology for resource classification is that individual cells may have different categories than their contiguous neighbour. However, it is quantitative and reproducible.

1 4 . 1 2 M I N E R A L R E S O U R C E T A B U L A T I O N

14.12.1 CUT-OFF S

The mineral resource reported on the Schaft Creek deposits employs a CuEq% cut-off. This represents the total metal content (i.e. copper + molybdenum + gold + silver) expressed as copper. CuEq% is calculated as a function of metal price (in US dollars) and metal recovery for molybdenum, gold and silver. The metal price and recovery parameters used to determine CuEq% is shown in Table 14.16.

Table 14.16 Metal Price and Recovery Parameters for CuEq% Calculation

Metal Metal Price

(US$) Updated Recovery

(%)

Copper 2.97/lb 100.0 Molybdenum 16.80/lb 60.9 Gold 1,256.00/oz 70.6 Silver 20.38/oz 43.4

The following calculation is used to convert the OK grades for each metal (copper, molybdenum, gold and silver) within each interpolated cell into a CuEq% based on the parameters in Table 14.17. No recoveries are applied for copper.

Cu_1 = (cu_ok*2.97*22.0462)

Cu_2 = (mo_ok*0.609*16.80*22.0462)

Cu_3 = (au_ok*0.706/31.1035*1256.00)

Cu_4 = (ag_ok*0.434/31.1035*20.38)

Cu_5 = Cu_1+Cu_2+Cu_3+Cu_4

CuEq = (Cu_5/2.97/22.0462)

[erase (Cu_*)]


The final function removes the temporary calculations from the resource model.

14.12.2 RESOURC E TABLES AND IMAGES

The Schaft Creek mineral resource tabulation (Measured, Indicated and Inferred) is reported in metric tonnes (1 t = 1,000 kg), grades are in molybdenum percent, copper percent, gold grams per tonne and silver grams per tonne. Gold and silver metal are reported as troy ounces. Copper and molybdenum metal are reported as metric tonnes.

Reporting cut-offs are in CuEq%. CuEq% calculations are outlined in Section 14.12.1 above.

The Paramount Zone and the Liard Zone are reported together in Table 14.17 and independently in Table 14.18 to Table 14.20. Visual illustrations of the mineral resource category distributions are provided in Figure 14.28 and Figure 14.29.


Table 14.17 Summary of the Schaft Creek Resource – Liard and Paramount Zones Combined

Resource Category

Cut-off CuEq%


Tonnes Ounces Grade


Cu (%)

Mo (%)

Au (gt)

Ag (gt)

Measured 0.05 54,921,900 147,979,067 2.694 710,181 455,400 25,280 1,153,898 8,457,472 0.480 0.308 0.017 0.243 1.778 0.10 54,794,250 147,635,596 2.694 709,909 455,262 25,275 1,153,196 8,444,100 0.481 0.308 0.017 0.243 1.779 0.15 54,416,250 146,615,287 2.694 708,572 454,548 25,238 1,149,944 8,402,626 0.483 0.310 0.017 0.244 1.783 0.20 53,423,325 143,941,114 2.694 703,786 451,685 25,093 1,140,495 8,295,854 0.489 0.314 0.017 0.246 1.793 0.25 51,190,275 137,927,871 2.694 690,087 443,086 24,687 1,115,692 8,041,256 0.500 0.321 0.018 0.252 1.813 0.30 47,069,175 126,829,423 2.695 659,244 423,451 23,736 1,061,997 7,553,077 0.520 0.334 0.019 0.260 1.852 0.35 41,014,050 110,534,082 2.695 606,161 389,880 22,096 967,410 6,775,078 0.548 0.353 0.020 0.272 1.906 0.40 34,230,000 92,271,368 2.696 537,531 345,890 19,980 848,292 5,871,693 0.583 0.375 0.022 0.286 1.979 0.45 27,547,650 74,277,384 2.696 461,099 296,713 17,472 720,235 4,930,538 0.621 0.399 0.024 0.302 2.065 0.50 21,376,200 57,645,235 2.697 382,035 245,617 14,641 594,891 4,010,802 0.663 0.426 0.025 0.321 2.164

Indicated 0.05 410,498,250 1,105,697,109 2.694 4,345,344 2,784,969 182,101 6,298,821 59,248,807 0.393 0.252 0.016 0.177 1.667 0.10 409,486,800 1,102,969,036 2.694 4,342,975 2,783,763 182,031 6,292,801 59,169,486 0.394 0.252 0.017 0.177 1.669 0.15 401,707,200 1,081,939,528 2.693 4,315,345 2,769,692 181,360 6,218,068 58,335,449 0.399 0.256 0.017 0.179 1.677 0.20 379,482,825 1,021,909,252 2.693 4,208,686 2,709,474 178,138 5,983,941 55,645,466 0.412 0.265 0.017 0.182 1.694 0.25 339,968,625 915,477,325 2.693 3,966,748 2,556,808 169,794 5,584,025 50,932,173 0.433 0.279 0.019 0.190 1.730 0.30 286,106,100 770,430,025 2.693 3,566,919 2,294,959 154,453 5,020,199 44,435,161 0.463 0.298 0.020 0.203 1.794 0.35 227,489,925 612,662,375 2.693 3,053,899 1,957,733 133,946 4,317,656 37,027,689 0.498 0.320 0.022 0.219 1.880 0.40 172,406,625 464,552,311 2.695 2,499,086 1,596,667 110,819 3,550,138 29,522,275 0.538 0.344 0.024 0.238 1.977 0.45 127,310,100 343,308,026 2.697 1,984,814 1,264,944 88,415 2,837,462 22,967,207 0.578 0.368 0.026 0.257 2.081 0.50 89,803,875 242,367,103 2.699 1,506,209 958,560 67,076 2,166,438 17,166,035 0.621 0.395 0.028 0.278 2.203

table continues…


Resource Category

Cut-off CuEq%


Tonnes Ounces Grade


Cu (%)

Mo (%)

Au (gt)

Ag (gt)

Inferred 0.05 232,068,900 625,134,106 2.694 2,154,900 1,319,749 94,296 3,444,780 32,423,450 0.345 0.211 0.015 0.171 1.613 0.10 228,899,775 616,607,156 2.694 2,149,258 1,314,696 94,205 3,443,000 32,400,049 0.349 0.213 0.015 0.174 1.634 0.15 221,727,900 597,191,283 2.693 2,123,136 1,303,101 93,581 3,359,565 31,601,369 0.356 0.218 0.016 0.175 1.646 0.20 199,885,500 538,065,824 2.692 2,018,913 1,247,192 91,028 3,095,694 28,800,765 0.375 0.232 0.017 0.179 1.665 0.25 167,424,000 450,670,341 2.692 1,822,334 1,128,998 84,380 2,725,750 24,815,546 0.404 0.251 0.019 0.188 1.713 0.30 132,156,675 355,826,449 2.692 1,561,588 966,790 73,365 2,321,034 20,533,048 0.439 0.272 0.021 0.203 1.795 0.35 98,202,825 264,462,368 2.693 1,264,919 780,660 59,756 1,894,709 16,148,473 0.478 0.295 0.023 0.223 1.899 0.40 71,670,000 193,060,107 2.694 998,088 611,650 46,871 1,535,576 12,597,631 0.517 0.317 0.024 0.247 2.030 0.45 51,542,175 138,916,161 2.695 768,777 468,363 35,316 1,224,170 9,603,460 0.553 0.337 0.025 0.274 2.150 0.50 35,177,925 94,914,213 2.698 560,445 340,682 25,029 916,792 6,945,542 0.590 0.359 0.026 0.300 2.276


Table 14.18 Mineral Resources in the Liard Zone

Resource Category

Cut-off CuEq%


Tonnes Ounces Grade


Cu (%)

Mo (%)

Au (gt)

Ag (gt)

Measured 0.05 47,184,150 127,193,721 2.696 610,276 390,733 20,693 1,023,178 7,175,502 0.480 0.307 0.016 0.250 1.755 0.10 47,059,875 126,859,329 2.696 610,014 390,600 20,688 1,022,488 7,162,450 0.481 0.308 0.016 0.251 1.756 0.15 46,749,375 126,020,347 2.696 608,916 390,038 20,661 1,019,557 7,128,691 0.483 0.310 0.016 0.252 1.759 0.20 45,917,550 123,779,785 2.696 604,907 387,671 20,543 1,011,306 7,040,561 0.489 0.313 0.017 0.254 1.769 0.25 44,189,925 119,122,898 2.696 594,308 381,080 20,268 990,639 6,848,150 0.499 0.320 0.017 0.259 1.788 0.30 40,758,075 109,876,225 2.696 568,636 364,831 19,543 943,473 6,449,182 0.518 0.332 0.018 0.267 1.826 0.35 35,735,175 96,347,804 2.696 524,551 337,120 18,307 860,365 5,810,257 0.544 0.350 0.019 0.278 1.876 0.40 29,831,550 80,450,235 2.697 464,807 298,972 16,603 752,060 5,028,300 0.578 0.372 0.021 0.291 1.944 0.45 23,947,800 64,593,720 2.697 397,431 255,638 14,541 635,203 4,202,747 0.615 0.396 0.023 0.306 2.024 0.50 18,390,450 49,608,101 2.697 326,183 209,614 12,081 519,755 3,378,836 0.658 0.423 0.024 0.326 2.118

Indicated 0.05 235,976,100 635,732,714 2.694 2,320,769 1,488,713 83,133 3,709,310 32,080,790 0.365 0.234 0.013 0.181 1.570 0.10 234,979,875 633,046,112 2.694 2,318,436 1,487,532 83,065 3,703,313 32,002,533 0.366 0.235 0.013 0.182 1.572 0.15 228,144,825 614,567,158 2.694 2,294,220 1,475,755 82,533 3,632,447 31,254,668 0.373 0.240 0.013 0.184 1.582 0.20 211,684,200 570,084,066 2.693 2,215,539 1,433,882 80,495 3,433,249 29,174,976 0.389 0.252 0.014 0.187 1.592 0.25 184,576,200 497,089,456 2.693 2,049,842 1,333,364 75,413 3,114,131 25,876,543 0.412 0.268 0.015 0.195 1.619 0.30 150,701,775 405,879,294 2.693 1,798,775 1,172,700 66,887 2,703,990 21,813,551 0.443 0.289 0.016 0.207 1.672 0.35 115,269,675 310,468,398 2.693 1,488,708 971,227 56,134 2,219,110 17,456,840 0.480 0.313 0.018 0.222 1.749 0.40 84,036,000 226,396,694 2.694 1,174,007 766,193 45,017 1,733,144 13,342,373 0.519 0.338 0.020 0.238 1.833 0.45 58,776,525 158,404,537 2.695 885,704 578,314 34,210 1,301,603 9,823,636 0.559 0.365 0.022 0.256 1.929 0.50 37,814,100 101,924,933 2.695 618,086 404,925 23,893 899,222 6,717,269 0.606 0.397 0.023 0.274 2.050

table continues…


Resource Category

Cut-off CuEq%


Tonnes Ounces Grade


Cu (%)

Mo (%)

Au (gt)

Ag (gt)

Inferred 0.05 142,989,450 385,285,911 2.695 1,060,681 643,867 40,502 1,868,318 17,966,814 0.275 0.167 0.011 0.151 1.450 0.10 139,820,325 376,758,961 2.695 1,055,039 638,814 40,410 1,866,538 17,943,413 0.280 0.170 0.011 0.154 1.481 0.15 132,692,325 357,461,112 2.694 1,029,083 627,338 39,791 1,783,284 17,149,108 0.288 0.175 0.011 0.155 1.492 0.20 111,596,700 300,350,584 2.691 928,582 573,930 37,380 1,524,056 14,424,834 0.309 0.191 0.012 0.158 1.494 0.25 81,603,075 219,607,861 2.691 747,128 466,190 31,438 1,167,992 10,705,011 0.340 0.212 0.014 0.165 1.516 0.30 52,151,025 140,421,557 2.693 530,005 333,241 22,747 803,337 7,115,356 0.377 0.237 0.016 0.178 1.576 0.35 29,370,000 79,118,235 2.694 331,628 209,809 14,535 488,186 4,170,468 0.419 0.265 0.018 0.192 1.640 0.40 15,210,600 40,980,379 2.694 189,514 118,751 8,493 283,286 2,325,049 0.462 0.290 0.021 0.215 1.765 0.45 7,737,075 20,840,817 2.694 104,576 65,198 4,666 159,541 1,256,993 0.502 0.313 0.022 0.238 1.876 0.50 3,264,675 8,795,606 2.694 47,620 29,706 2,114 72,922 559,423 0.541 0.338 0.024 0.258 1.978


Table 14.19 Mineral Resources in the Paramount Zone

Resource Category

Cut-off CuEq%


Tonnes Ounces Grade


Cu (%)

Mo (%)

Au (gt)

Ag (gt)

Measured 0.05 7,737,750 20,785,347 2.686 99,904 64,667 4,587 130,719 1,281,970 0.481 0.311 0.022 0.196 1.918 0.10 7,734,375 20,776,268 2.686 99,895 64,661 4,587 130,708 1,281,650 0.481 0.311 0.022 0.196 1.919 0.15 7,666,875 20,594,940 2.686 99,657 64,510 4,577 130,387 1,273,935 0.484 0.313 0.022 0.197 1.924 0.20 7,505,775 20,161,329 2.686 98,878 64,015 4,549 129,189 1,255,293 0.490 0.318 0.023 0.199 1.937 0.25 7,000,350 18,804,973 2.686 95,778 62,006 4,420 125,053 1,193,105 0.509 0.330 0.024 0.207 1.973 0.30 6,311,100 16,953,197 2.686 90,608 58,620 4,193 118,524 1,103,894 0.534 0.346 0.025 0.217 2.025 0.35 5,278,875 14,186,278 2.687 81,610 52,760 3,788 107,045 964,821 0.575 0.372 0.027 0.235 2.115 0.40 4,398,450 11,821,133 2.688 72,725 46,918 3,377 96,232 843,394 0.615 0.397 0.029 0.253 2.219 0.45 3,599,850 9,683,664 2.690 63,668 41,075 2,930 85,032 727,791 0.657 0.424 0.030 0.273 2.338 0.50 2,985,750 8,037,133 2.692 55,852 36,003 2,560 75,136 631,966 0.695 0.448 0.032 0.291 2.446

Indicated 0.05 174,522,150 469,964,395 2.693 2,024,576 1,296,257 98,968 2,589,511 27,168,017 0.431 0.276 0.021 0.171 1.798 0.10 174,506,925 469,922,925 2.693 2,024,540 1,296,232 98,966 2,589,488 27,166,953 0.431 0.276 0.021 0.171 1.798 0.15 173,562,375 467,372,370 2.693 2,021,125 1,293,937 98,827 2,585,621 27,080,780 0.432 0.277 0.021 0.172 1.802 0.20 167,798,625 451,825,186 2.693 1,993,147 1,275,592 97,643 2,550,692 26,470,490 0.441 0.282 0.022 0.176 1.822 0.25 155,392,425 418,387,869 2.692 1,916,905 1,223,444 94,380 2,469,894 25,055,630 0.458 0.292 0.023 0.184 1.863 0.30 135,404,325 364,550,731 2.692 1,768,144 1,122,259 87,566 2,316,208 22,621,610 0.485 0.308 0.024 0.198 1.930 0.35 112,220,250 302,193,978 2.693 1,565,191 986,506 77,812 2,098,546 19,570,850 0.518 0.326 0.026 0.216 2.014 0.40 88,370,625 238,155,616 2.695 1,325,079 830,474 65,802 1,816,994 16,179,902 0.556 0.349 0.028 0.237 2.113 0.45 68,533,575 184,903,489 2.698 1,099,110 686,630 54,205 1,535,858 13,143,571 0.594 0.371 0.029 0.258 2.211 0.50 51,989,775 140,442,171 2.701 888,122 553,635 43,183 1,267,216 10,448,766 0.632 0.394 0.031 0.281 2.314

table continues…


Resource Category

Cut-off CuEq%


Tonnes Ounces Grade


Cu (%)

Mo (%)

Au (gt)

Ag (gt)

Inferred 0.05 89,079,450 239,848,195 2.693 1,094,219 675,882 53,794 1,576,462 14,456,636 0.456 0.282 0.022 0.204 1.875 0.10 89,079,450 239,848,195 2.693 1,094,219 675,882 53,794 1,576,462 14,456,636 0.456 0.282 0.022 0.204 1.875 0.15 89,035,575 239,730,171 2.693 1,094,053 675,763 53,789 1,576,281 14,452,261 0.456 0.282 0.022 0.205 1.875 0.20 88,288,800 237,715,239 2.692 1,090,331 673,262 53,647 1,571,638 14,375,930 0.459 0.283 0.023 0.206 1.881 0.25 85,820,925 231,062,480 2.692 1,075,207 662,808 52,942 1,557,758 14,110,535 0.465 0.287 0.023 0.210 1.899 0.30 80,005,650 215,404,892 2.692 1,031,583 633,549 50,618 1,517,697 13,417,692 0.479 0.294 0.023 0.219 1.937 0.35 68,832,825 185,344,133 2.693 933,290 570,851 45,221 1,406,523 11,978,005 0.504 0.308 0.024 0.236 2.010 0.40 56,459,400 152,079,728 2.694 808,574 492,900 38,377 1,252,291 10,272,582 0.532 0.324 0.025 0.256 2.101 0.45 43,805,100 118,075,344 2.695 664,201 403,165 30,649 1,064,629 8,346,467 0.563 0.341 0.026 0.280 2.199 0.50 31,913,250 86,118,608 2.699 512,826 310,976 22,915 843,870 6,386,119 0.595 0.361 0.027 0.305 2.306


Table 14.20 Combined Measured and Indicated Resources in the Liard and Paramount Zones

Zone CuEq (%)


Tonnes Metal Ounces Metal Grade


Cu (%)

Mo (%)

Au (gt)

Ag (gt)

Liard 0.05 283,160,250 762,926,435 2.694 2,931,045 1,879,446 103,826 4,732,488 39,256,292 0.384 0.246 0.014 0.193 1.600 0.10 282,039,750 759,905,440 2.694 2,928,449 1,878,132 103,753 4,725,802 39,164,983 0.385 0.247 0.014 0.193 1.603 0.15 274,894,200 740,587,505 2.694 2,903,135 1,865,793 103,194 4,652,003 38,383,359 0.392 0.252 0.014 0.195 1.612 0.20 257,601,750 693,863,851 2.694 2,820,446 1,821,552 101,038 4,444,555 36,215,537 0.406 0.263 0.015 0.199 1.623 0.25 228,766,125 616,212,354 2.694 2,644,151 1,714,444 95,681 4,104,770 32,724,693 0.429 0.278 0.016 0.207 1.652 0.30 191,459,850 515,755,520 2.694 2,367,412 1,537,531 86,430 3,647,463 28,262,733 0.459 0.298 0.017 0.220 1.704 0.35 151,004,850 406,816,201 2.694 2,013,260 1,308,347 74,441 3,079,475 23,267,097 0.495 0.322 0.018 0.235 1.779 0.40 113,867,550 306,846,929 2.695 1,638,814 1,065,165 61,620 2,485,204 18,370,672 0.534 0.347 0.020 0.252 1.862 0.45 82,724,325 222,998,257 2.696 1,283,135 833,952 48,751 1,936,806 14,026,383 0.575 0.374 0.022 0.270 1.956 0.50 56,204,550 151,533,034 2.696 944,270 614,539 35,974 1,418,977 10,096,105 0.623 0.406 0.024 0.291 2.072

Paramount 0.05 182,259,900 490,749,741 2.693 2,124,480 1,360,924 103,556 2,720,230 28,449,987 0.433 0.277 0.021 0.172 1.803 0.10 182,241,300 490,699,192 2.693 2,124,435 1,360,893 103,553 2,720,196 28,448,603 0.433 0.277 0.021 0.172 1.803 0.15 181,229,250 487,967,310 2.693 2,120,782 1,358,447 103,404 2,716,008 28,354,715 0.435 0.278 0.021 0.173 1.807 0.20 175,304,400 471,986,515 2.692 2,092,025 1,339,607 102,192 2,679,881 27,725,784 0.443 0.284 0.022 0.177 1.827 0.25 162,392,775 437,192,842 2.692 2,012,684 1,285,450 98,800 2,594,947 26,248,736 0.460 0.294 0.023 0.185 1.867 0.30 141,715,425 381,503,928 2.692 1,858,752 1,180,880 91,759 2,434,732 23,725,504 0.487 0.310 0.024 0.199 1.934 0.35 117,499,125 316,380,256 2.693 1,646,801 1,039,266 81,600 2,205,591 20,535,671 0.521 0.328 0.026 0.217 2.019 0.40 92,769,075 249,976,750 2.695 1,397,803 877,392 69,180 1,913,226 17,023,296 0.559 0.351 0.028 0.238 2.118 0.45 72,133,425 194,587,154 2.698 1,162,778 727,705 57,135 1,620,890 13,871,363 0.598 0.374 0.029 0.259 2.217 0.50 54,975,525 148,479,304 2.701 943,974 589,638 45,743 1,342,353 11,080,732 0.636 0.397 0.031 0.281 2.321


Figure 14.28 Oblique View (Looking Northeast) Illustrating Mineral Resource Classification of Schaft Creek – Entire Deposit

Note: Scale of 1:12,500.


Figure 14.29 Oblique View (Looking Northeast) Illustrating Mineral Resource Classification of Schaft Creek – Sliced through 6359750N and 379470E

Note: Scale of 1:20,000.


14.12.3 GRAD E – TONN AGE CU R VES

Grade – Tonnage Curves were calculated for separate domains (Liard Zone and Paramount Zone) with respect to each resource classification. Representative curves for Cu% for the Liard Zone and Paramount Zone are depicted in Figure 14.30 and Figure 14.31 below, respectively. A complete set of these Grade – Tonnage Curves for all metals are presented in Appendix G.

Note the prominent curves inflection at approximately 0.20 Cu%. This corresponds to the result of the 0.25 CuEq% indicator boundary wireframe, essentially excluding the influence of low grade assay data in cell grade interpolation.


Figure 14.30 Liard Zone Cu% Grade – Tonnage Curve

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50Measured Tonnes 127,193,721 126,859,329 126,020,347 123,779,785 119,122,898 109,876,225 96,347,804 80,450,235 64,593,720 49,608,101Indicated Tonnes 635,732,714 633,046,112 614,567,158 570,084,066 497,089,456 405,879,294 310,468,398 226,396,694 158,404,537 101,924,933Inferred Tonnes 385,285,911 376,758,961 357,461,112 300,350,584 219,607,861 140,421,557 79,118,235 40,980,379 20,840,817 8,795,606Measured Cu% 0.307 0.308 0.310 0.313 0.320 0.332 0.350 0.372 0.396 0.423Indicated Cu% 0.234 0.235 0.240 0.252 0.268 0.289 0.313 0.338 0.365 0.397Inferred Cu% 0.167 0.170 0.175 0.191 0.212 0.237 0.265 0.290 0.313 0.338

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

Gra

de (

Cu%

)

Res

ourc

e to

nnes

(t)

Cut-off Grade (Cu%)

Mineral Inventory Grade-Tonnage Curve

Cu% : Liard Zone

Copper Fox Metals Inc.

23 May 2012

LIARD ZONE


Figure 14.31 Paramount Zone Cu% Grade – Tonnage Curve

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50Measured Tonnes 20,785,347 20,776,268 20,594,940 20,161,329 18,804,973 16,953,197 14,186,278 11,821,133 9,683,664 8,037,133Indicated Tonnes 469,964,395 469,922,925 467,372,370 451,825,186 418,387,869 364,550,731 302,193,978 238,155,616 184,903,489 140,442,171Inferred Tonnes 239,848,195 239,848,195 239,730,171 237,715,239 231,062,480 215,404,892 185,344,133 152,079,728 118,075,344 86,118,608Measured Cu% 0.311 0.311 0.313 0.318 0.330 0.346 0.372 0.397 0.424 0.448Indicated Cu% 0.276 0.276 0.277 0.282 0.292 0.308 0.326 0.349 0.371 0.394Inferred Cu% 0.282 0.282 0.282 0.283 0.287 0.294 0.308 0.324 0.341 0.361

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

Gra

de (

Cu%

)

Res

ourc

e to

nnes

(t)

Cut-off Grade (Cu%)


Cu% : Paramount Zone


23 May 2012

PARAMOUNT ZONE


23 May 2012


14.12.4 GRAD E – METAL CUR VES

Grade – Metal Curves were calculated for the two separate domains, Liard Zone and Paramount Zone, with respect to each resource classification. Representative curves for Cu% for the Liard and Paramount Zones are depicted in Figure 14.32 and Figure 14.33 below, respectively. A complete set of these Grade – Metal Curves for all metals are presented in Appendix H.

Note the prominent curves inflection at approximately 0.20 Cu%. This corresponds to the result of the 0.25 CuEq% indicator boundary wireframe, essentially excluding the influence of low-grade assay data in cell grade interpolation.


Figure 14.32 Liard Zone Cu% Grade – Metal Curves

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50Measured Cu Metal (t) 390,733 390,600 390,038 387,671 381,080 364,831 337,120 298,972 255,638 209,614Indicated Cu Metal (t) 1,488,713 1,487,532 1,475,755 1,433,882 1,333,364 1,172,700 971,227 766,193 578,314 404,925Inferred Cu Metal (t) 643,867 638,814 627,338 573,930 466,190 333,241 209,809 118,751 65,198 29,706Measured Cu% 0.307 0.308 0.310 0.313 0.320 0.332 0.350 0.372 0.396 0.423Indicated Cu% 0.234 0.235 0.240 0.252 0.268 0.289 0.313 0.338 0.365 0.397Inferred Cu% 0.167 0.170 0.175 0.191 0.212 0.237 0.265 0.290 0.313 0.338

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Gra

de (

Cu%

)

Res

ourc

e to

nnes

(t)

Cut-off Grade (Cu%)

Mineral Inventory Grade - Metal Curve

Cu% : Liard Zone


23 May 2012

LIARD ZONE


Figure 14.33 Paramount Zone Cu% Grade – Metal Curves

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50Measured Cu metal (t) 64,667 64,661 64,510 64,015 62,006 58,620 52,760 46,918 41,075 36,003Indicated Cu Metal (t) 1,296,257 1,296,232 1,293,937 1,275,592 1,223,444 1,122,259 986,506 830,474 686,630 553,635Inferred Cu Metal (t) 675,882 675,882 675,763 673,262 662,808 633,549 570,851 492,900 403,165 310,976Measured Cu% 0.311 0.311 0.313 0.318 0.330 0.346 0.372 0.397 0.424 0.448Indicated Cu% 0.276 0.276 0.277 0.282 0.292 0.308 0.326 0.349 0.371 0.394Inferred Cu% 0.282 0.282 0.282 0.283 0.287 0.294 0.308 0.324 0.341 0.361

0.00

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Mineral Inventory Grade- Metal Curve

Cu% : Paramount Zone


23 May 2012

PARAMOUNT ZONE


23 May 2012


1 5 . 0 A D J A C E N T P R O P E R T I E S

There are no material Adjacent Properties.


1 6 . 0 O T H E R R E L E V A N T D A T A A N D I N F O R M A T I O N

In 2010, Copper Fox retained Tetra Tech (the main contractor), Knight Piésold, Stantec, McElhanney, and BGC Engineering Inc. (BGC) to complete the feasibility study on the Schaft Creek deposit, with a minimum 120,000 t/d open pit mine. The feasibility study will incorporate the updated mineral resource estimate that is the subject of this report, as well as a mineral reserve estimate, revised capital cost and operating costs estimates and other technical, socioeconomic and financial aspects. The study is anticipated to be completed in 2012. Primary responsibilities for each contractor are as follows:

• Tetra Tech: site layout, pit optimization, mine planning, dilution studies, process mass balance, piping and electrical planning, maintenance and explosive facilities, road system, metallurgical process, mill design, expected mill recoveries, and options for transportation and shipping facilities of bulk concentrate for smelting and refining.

• Knight Piésold: open pit geotechnical and hydrogeological study, plant site geotechnical drilling, hydrometeorology study and mine site water balance, alignment for the transmission line to supply electrical power to site, tailing storage facility design, location of tailings pipeline, water reclamation designs for the mill, milling and maintenance facilities sites, various components of infrastructure, pit slope design and overall pit slope angle.

• McElhanney: road design and adjustments in areas where potential geo-hazards have been identified.

• BGC: potential geo-hazards assessment for the road and power line access to Schaft Creek.

• Stantec: assemble environmental data collected to date and prepare the EA application.

This technical report addresses all information relevant to the accompanying updated resource estimate, and does not include results from the ongoing feasibility study.


1 7 . 0 I N T E R P R E T A T I O N A N D C O N C L U S I O N S

Tetra Tech was retained by Copper Fox to undertake a mineral resource update and accompanying NI 43-101 technical report on the Schaft Creek deposit. The QPs responsible for this work are Robert Morrison and Laura Karrei who are based in Toronto, Ontario.

A previous mineral resource update and technical report for the Schaft Creek deposit was completed by AMEC (Kulla et al. 2011). Tetra Tech concurs with the interpretations and conclusions in the AMEC report, including:

...mining tenure held by Copper Fox in the Project area is valid, and sufficient to support declaration of Mineral Resources.

Sampling methods are acceptable, meet industry-standard practice, and are acceptable for Mineral Resource estimation purposes.

The quality of the Copper Fox copper, gold, and molybdenum drill core and analytical data is reliable and that sample preparation, analysis, and security are generally performed in accordance with exploration best practices and industry standards.

Legacy drill data have been validated by Copper Fox's re-logging and re-assay programs, and copper, molybdenum and gold data from these programs are reliable, and can be used to support Mineral Resource estimates.

In comparison with the AMEC 2011 Schaft Creek Resource estimate of Kulla et al. (2011), there are some important differences with the Tetra Tech resource estimate that is the subject of this report:

• The Liard Zone and Paramount Zone were domained separately. Ongoing geological investigations by Copper Fox indicate that these two domains represent different styles of mineralization. These two zones are separated by a postulated northeast-southwest trending and steeply dipping fault.

• A 0.25% copper equivalent grade shell wireframe was generated to confine the extrapolation of grade in the Tetra Tech model. AMEC used a copper equivalent grade shell cut-off of 0.1% and molybdenum cut-off of 0.01%. Tetra Tech did not utilize a separate molybdenum grade shell for resource estimation.

• Tetra Tech’s grade shell wireframe was initially completed using Leapfrog™ software and refined using Datamine™ software. The block model and resource estimate were completed using Datamine™ software.


• A composite length of 4 m was employed by Tetra Tech in comparison with AMEC's 15 m composite. This length was chosen to maximize the available samples for interpolation, while ensuring interpolations were not dominated by single drillholes (no more than three composites permitted for interpolation from a single drillhole).

• Silver was included in the resource estimate. Copper Fox completed sufficient re-assays of drill core to facilitate independent estimation of silver into the Tetra Tech block model.

• No linear regression calculation with copper was used in gold estimation. Gold was estimated independently of copper. AMEC used a basic regression equation, based on the correlation between copper and gold, to accommodate missing gold assays in their resource estimate. The problems inherent in this strategy are two-fold: (1) the correlation between copper and gold will introduce error to the gold resource estimate; and (2) copper is significantly less skewed than gold. Copper Fox completed sufficient re-assays of drill core to facilitate independent estimation of gold into the Tetra Tech block model.

• Density was estimated into the Tetra Tech resource model where practical. Top-cuts and bottom-cuts were applied to the density data set to remove spurious measurements. Densities were assigned to cells which could not be estimated.

• The F-Function and LaGrange Multiplier were estimated into cells (based on the copper grade) to facilitate the calculation of the KE and Z/Z* as a means to evaluate the quality of the Ordinary Kriged estimate.

• The Z/Z* was used to assign a resource classification. Measured was applied to cells with greater than 0.95 Z/Z*, Indicated was applied to cells with Z/Z* greater than 0.25 and less than 0.95, and Inferred was applied to cells with Z/Z* less than 0.25.

In Tetra Tech’s opinion, the resulting block model and mineral resource estimate is a fair and reasonable representation of the Schaft Creek deposit. The model is sufficiently advanced and sophisticated to be used for a full mining feasibility study.


1 8 . 0 R E C O M M E N D A T I O N S

It is Tetra Tech’s opinion that additional work expenditures are warranted, and two separate work programs are proposed. The execution of Phase II is contingent upon the results of Phase I.

1 8 . 1 P H A S E 1 W O R K P R O G R A M

Phase I is designed to focus on exploring and delineating the new mineralized zones and chargeability anomalies identified in the Quantec Titan and High Resolution Magnetic surveys, and to infill drill part of the northern portion of the Paramount Zone in order to upgrade the resource category from inferred to indicated. Phase I will entail a combination of diamond drilling and geophysical surveying.

The exploration program should be designed to address the following objectives:

• Perform a Quantec Titan-24 survey as a follow-up to the previously completed surveys outlined in Section 9.0. The area to be targeted is between the GK and ES Zones and eastwards towards Mount LaCasse.

• Preliminary drilling into the Mike, GK and ES Zones to test the chargeability anomalies, which may represent additional zones of mineralization.

• Continue drilling into the Discovery Zone, situated approximately 1,200 m northwest of the deposit, as a follow-up to mineralization encountered in drillhole 2011CF422. While a considerable amount of drilling is required to delineate and determine the significance of this discovery, the continuity of the mineralization and its location on the western edge of a large strong chargeability anomaly suggests this zone could host significant mineralization.

• Perform infill drilling in the northern Paramount Zone to upgrade the resource category from indicated to inferred within that area of the proposed open pit.

• Perform drilling proximal to holes 2011CF423 and 2011CF424, as a follow-up to newly encountered mineralization. The area is located west of West Breccia Zone and outside of the currently defined deposit and western wall of the proposed open pit. Information gained could provide insight into the geological interpretation of the West Breccia Zone and could expand the mineral resource estimate.

• Perform drilling along the western margin of the proposed pit wall, proximal to the West Breccia Zone.


An estimated budget for Phase I is provided in Table 18.1 and details of proposed drillholes are summarized in Table 18.2. This is an estimation of costs, and is subject to change upon program execution.

Table 18.1 Estimated Budget for Phase I Work Program

Activity Comments Estimated Cost

(CDN$)

Quantec Titan-24 Survey

Follow-up to surveys performed in 2011 and 2012, cover area between GK and ES zones, and eastwards towards Mount LaCasse

30 line km, 100 m line spacing, interpretation, maps, etc.

$310,000

Drill untested chargeability anomalies identified in Quantec Titan-24 surveys

One drillhole into each of the zones (ES, GK, and Mike)

(3 drillholes)x (300 m)x($535/m)

$481,500

Drill test Discovery Zone

2 drillholes to follow-up on Titan-24 chargeability anomaly and mineralization encountered in drillhole 2011CF422

(2 drillholes)x(300 m each)x($535/m)

$321,000

Infill drilling in northern Paramount Zone

2 drillholes in northern part of Paramount Zone, proximal to 2011CF415, to increase resource from inferred to indicated, name TTProposed1 and TTProposed2 in Table 18.2

(2 drillholes)x(400 m)x ($535/m)

$428,000

Drilling proximal to mineralization intersected west of West Breccia Zone and the western margin of proposed pit wall

Proximal to drillholes 2011CF423 and 2011CF434, named TTProposed3 and TTProposed4 in Table 18.2

(2 drillholes)x(550 m)x ($535/m)

$588,500

Total - - $2,129,000

Note: The estimate for drilling of $535/m includes the costs of freight, assaying, geological logging, drill contractor surcharges, etc. The value is representative of costs incurred during the 2011 drill program.


Table 18.2 Proposed Drillholes for Phase I Work Program

Drillhole Name

Coordinates (UTM, NAD 83, Zone 9) Orientation

Length (m) Comments

Easting (m)

Northing (m)

Elevation (masl)

Azimuth (°)

Dip (°)

TTProposed1 379420 6361250 1030 0 -90 200 Phase I - northern part of Paramount Zone, proximal to 2011CF415, purpose to increase resource from inferred to indicated

TTProposed2 379440 6361320 1055 0 -90 200 Phase I - northern part of Paramount Zone, proximal to 2011CF415, purpose to increase resource from inferred to indicated

TTProposed3 379190 6359620 865 275 -60 250 Phase I - west of Liard / West Breccia Zone, purpose to test mineralization intersected in nearby drillholes 2011CF423 and 2011CF424, mineralization in area currently not included in resource estimate

TTProposed4 379400 6359560 875 90 -50 300 Phase I - purpose to test for mineralization proximal to proposed pit wall at West Breccia Zone

1 8 . 2 P H A S E I I W O R K P R O G R A M

Pending positive results of Phase I, it is recommended that Copper Fox proceed to Phase II. Phase II is designed to further explore the GK, ES and Mike chargeability anomalies, and the area of mineralization west of the West Breccia Zone.

An estimated budget for Phase II is provided in Table 18.3 and details of proposed drillholes are summarized in Table 18.4. This is an estimation of costs, and is subject to change upon program execution.


Table 18.3 Estimated Budget for Phase II Work Program

Activity Comments Estimated Cost (CDN$)

Drill chargeability anomalies identified in Quantec Titan-24 surveys

Follow-up drilling to Phase I for GK, ES, and Mike Zones, if successful


$963,000

if Phase I of west wall of West Breccia Zone, further drilling (vertical holes making fence)

Fence of four drillholes, named TTProposed5 - TTProposed8 in Table 18.4


$428,000

Total - - $1,391,000

Note: The estimate for drilling of $535/m includes the costs of freight, assaying, geological logging, drill contractor surcharges, etc. The value is representative of costs incurred during the 2011 drill program.

Table 18.4 Proposed Drillholes for Phase II Work Program

Drillhole Name


Length (m) Comments

Easting (m)

Northing (m)

Elevation (masl)

Azimuth (°)

Dip (°)

TTProposed5 379290 6359700 865 0 -90 200 Phase II - pending positive results of drillholes TTProposed3 and TTProposed4, drill fence of holes to test for continuous mineralization west of currently define resource (west of West Breccia Zone)


table continues…


Drillhole Name


Length (m) Comments

Easting (m)

Northing (m)

Elevation (masl)

Azimuth (°)

Dip (°)



1 8 . 3 O T H E R R E C O M M E N D A T I O N S

Other recommendations regarding database management and general procedures are:

• when using magnetic-based downhole survey instruments:

insert the magnetic field value into the database to later assess possibly questionable azimuths readings

record the magnetic declination used on either the original survey sheets or in the database to keep track of which values were used for the various drilling programs

consistently use the same magnetic declination per drilling program (inconsistently, values of either 21.2° or 21.23° were used in 2010)

• when a downhole survey reading is recorded in the database, but rejected from being considered a reliable value, record the reasoning behind that decision (e.g. magnetic field value was too high and reading taken too closely to rods, or instrument was in motion when was reading taken)


• when converting drillhole depth units from feet to metres, maintain a consistent conversion factor of 0.3048 and round the values to a consistent decimal place

• if a downhole station reading does not exist at the drillhole collar, maintain database consistency in assigning a value (e.g. either always use the planned azimuth or always extrapolate the shallowest station reading depth value upwards)

• collect additional specific gravity measurements and perform a review of spurious values in current dataset

• to test for possible high grade extensions at depth, and to develop a more robust resource estimate at depth, selectively drill deeper to avoid stopping holes in mineralization. This could be particularly beneficial for upgrading some of the mineralization currently classified as inferred. Potential targets for this objective are illustrated in Figure 18.1 and Figure 18.2. Cells shown in these two figures are classified as Inferred with copper equivalency greater than or equal to 0.5%, and drillholes and block model are shown with copper percent grade. Drillholes indicate copper grades are increasing at depth and terminate in mineralization.

Figure 18.1 Section 379650E – Paramount Zone

Note: South to left-hand side


Figure 18.2 Section 6360900 N – Paramount Zone

Note: West to left-hand side

It is recommended that Copper Fox consider completing a few deep diamond drillholes in these areas to test for higher grade mineralization at depth.


1 9 . 0 R E F E R E N C E S

Bender, M.R., McCandlish, K., Gray, J., and Hyyppa, R., 2007. Copper Fox Metals Inc. Canadian NI43-101 Technical Report, Preliminary Economic Aassessment on the Development of the Schaft Creek Project Located in Northwest British Columbia, Canada. Prepared by Samuel Engineering Inc. effective date December 7, 2007, 389 pages.

Bender, M., Holm, K., Beauchamp, D., McCandlish, K., Uren, S., Pow, D., Gray, J., Hanych, W., and Hyyppa, R., 2008. Copper Fox Metals, Inc. Canadian National Instrument 43-101 Technical Report Preliminary Feasibility Study on the Development of the Schaft Creek Project Located in Northwest British Columbia, Canada: unpublished technical report prepared by Samuel Engineering Inc. for Copper Fox, effective date September 15, 2008, amended and restated November 28, 2008.

Bender, M., Holm, K., Beauchamp, D., McCandlish, K., Uren, S., Pow, D., Gray, J., Hanych, W., and Hyyppa, R., 2008b. Copper Fox Metals, Inc. Canadian National Instrument 43-101 Technical Report Preliminary Feasibility Study on the Development of the Schaft Creek Project Located in Northwest British Columbia, Canada: unpublished technical report prepared by Samuel Engineering Inc. for Copper Fox, effective date September 15, 2008.

Canadian Institute of Mining, Metallurgy and Petroleum (CIM), 2003: Estimation of Mineral Resources and Mineral Reserves, Best Practice Guidelines: Canadian Institute of Mining, Metallurgy and Petroleum, November 23, 2003, http://www.cim.org/committees/estimation2003.pdf

Canadian Institute of Mining, Metallurgy and Petroleum (CIM), 2010: CIM Standards for Mineral Resources and Mineral Reserves, Definitions and Guidelines: Canadian Institute of Mining, Metallurgy and Petroleum, November 2010, http://www.cim.org/UserFiles/File/CIM_DEFINITON_STANDARDS_Nov_2010.pdf

Caron, M.E., Carter, G., and McGuigan, P.J., 2012. Progress Report – 2011 Exploration Program for the Schaft Creek Property, Schaft Creek, Northwestern British Columbia. Prepared by Cambria Geosciences Inc. April 2012, 77 pages, July 13, 2010.

Gharibi, M., and Eadie, T., 2010. Titan-24 DC/IP/MT Survey Geophysical Report, Shcaft Creek Project, British Columbia, Canada, on Behalf of Copper Fox Metals Inc., British Columbia, Canada. Prepared by Quantec Geosciences Ltd. 265 pages.


Gharibi, M., and Faucher, N., 2010. Titan-24 DC/IP/MT Survey Geophysical Report, Shcaft Creek Project – Phase II, British Columbia, Canada, on Behalf of Copper Fox Metals Inc., British Columbia, Canada. Prepared by Quantec Geosciences Ltd. 225 pages, July 12, 2010.

Gharibi, M., Perera, S., and Lee. W., 2011. Titan-24 DC/IP/MT Survey Geophysical Report, Shcaft Creek Project – Phase III, British Columbia, Canada, on Behalf of Copper Fox Metals Inc., Alberta, Canada. Prepared by Quantec Geosciences Ltd. 395 pages. October 27, 2011.

Giroux, G., and Ostensoe, E., 2004. Summary Report: Status and Resource Estimate Schaft Creek Property, Northwestern British Columbia: unpublished technical report prepared for 955528 Alberta Ltd., effective date 30 June 2003, amended 20 May 2004.

Hanych, W., and Ewanchuk, S., 2007. Geological Technical Report 2007 Mapping and Data Compilation, Schaft Creek Deposit, Liard Mining Division, British Columbia, Copper Fox internal report, 90 pages.

Johnson, H., and Shouldice, T., 2012. Metallurgical Assessment of Schaft Creek Ores – Liard District, British Columbia, Canada, KM3149, 381 pages, January 12, 2012.

Krige, D.G. 1996. A practical analysis of the effects of spatial structure and data availableand used, on conditional biases in ordinary kriging, 5th Int. Geostatistics Congress,Wollongong, Australia, 1996.

Kulla, G., Thomas, D., and Lipiec, T., 2011. Copper Fox Metals Inc. Schaft Creek Polymetallic Project, British Columbia, BC, NI 43-101 Technical report on Updated Mineral Resource Estimate. Prepared by AMEC, effective date July 26, 2011, 169 pages.

Logan, J.M., Drobe, J.R., and McClelland, W.C., 2000. Geology of the Forrest Kerr – Mess Creek Area, Northwestern British Columbia (104B/10, 15 & 104G/2 & 7W), Bulletin 104, Geological Survey Branch, Energy and Materials Division, British Columbia Ministry of Energy and Mines, Canada.

McCandlish, K, 2007. Updated Resource Estimate for the Schaft Creek Deposit, Northwest British Columbia, Canada Technical Report on a Mineral Property Pursuant to National Instrument 43-101 of the Canadian Securities Administrators: unpublished technical report prepared by Associated Geosciences Ltd. for Copper Fox, effective date 22 June 2007.

Poon, G., 2011. Schaft Creek Property – Airborne Geophysical Report. Prepared by Precision GeoSurveys Inc., 25 pages, June 2011.


Press Release, May 10, 2012. Copper Fox Annouces 2012 Exploration Program and Acquires Additional Mineral Tenures Around Schaft Creek Property. www.copperfoxmetals.com.

Press Release, April 20, 2012. Copper Fox Announces First Quarter Results. www.copperfoxmetals.com.

Press Release, December 12, 2011. Copper Fox Drilling Expands Paramount Zone with Intersection of 1.10% CuEq over 65 m, and Updates Corporate Activities. www.copperfoxmetals.com.

Press Release, November 15, 2011. Drilling Intersects 0.91% Copper Equivalent Over 387 m at Schaft Creek. www.copperfoxmetals.com.

Press Release, October 13, 2011. Copper Fox Secures Shipping Facilities for Concentrate at Port of Stewart for Schaft Creek Project. www.copperfoxmetals.com.

Press Release, September 28, 2011. Copper Fox Reports 2011 Third Quarter Financial Results and a Corporate Update. www.copperfoxmetals.com.

Press Release, July 26, 2011. Drilling Intersects 1.18% Copper Equivalent Over 161 m at Schaft Creek and Confirms Mineralized Nature of Chargeability Anomaly. www.copperfoxmetals.com.

Press Release, June 29, 2011. Copper Fox Advances Feasibility Study and Reports 2011 Second Quarter Financial Results. www.copperfoxmetals.com.

Press Release, June 21, 2011. High Resolution Magnetic Survey at Schaft Creek Confirms Similar Signatures for Mineralized Zones, Diamond Drilling Underway, Resource Estimate Tables Received From AMEC. www.copperfoxmetals.com.

Press Release, May 9, 2011. Copper Fox Welcomes the Federal Government of Canada’s Approval of the Northwest Transmission Line Project. www.copperfoxmetals.com.

Press Release, April 13, 2011. Copper Fox Announces Completion of 3D Model and award of High-Resolution Airborne Geophysical Contract. www.copperfoxmetals.com.

Press Release, March 4, 2011. Copper Fox Metals Inc. Announces Incentive Stock Option Grants. www.copperfoxmetals.com.

Press Release, February 23, 2011. DDH CF405 Tests Chargeability Anomaly and Expands Zone of Deep, Higher Grade Mineralization at Schaft Creek. www.copperfoxmetals.com.


Press Release, February 15, 2011. Copper Fox Announces Fourth Quarter Highlights and 2010 Year-End Financial Results. www.copperfoxmetals.com.

Press Release, December 14, 2010. Drilling Continues to Intersect Deep Higher Grade Copper-Gold-Molybdenum Mineralization at Schaft Creek Environmental Assessment Process Reaches Milestone. www.copperfoxmetals.com.

Press Release, September 23, 2010. Copper Fox Reports Third Quarter Financial Results and Operating Activities. www.copperfoxmetals.com.

Press Release, October 23, 2008. Copper Fox Announced New High Grade Copper and Gold Intervals From Assay Results Reported in the First 16 Drill Holes from its 2008 Drill Season. www.copperfoxmetals.com.

Press Release, June 26, 2008, 2007 Drilling and Geophysical Results All Show Increased Potential for Schaft Creek Deposit, Copper Fox saya. www.copperfoxmetals.com.

Press Release, December 19, 2006. Copper Fox Metals Inc. Releases More Assay Results From its 2006. www.copperfoxmetals.com.

Richards, J.P., 2003. Tectono-Magmatic Precursors for Porphyry Cu-(Mo-Au) Deposit Formation, Economic Geology, December 2003, v. 98, p. 1515-1533, doi:10.2113/gsecongeo.98.8.1515

Robillard, C., 2008. Schaft Creek Geophysics, Schaft Creek, British Columbia. Prepared by Associated Geosciences Ltd., unpublished report, 36 pages.

Scott, J.E., Richards, J.P., Heaman, L.M., Creaser, R.A.and Salazar G.S. 2008. The Schaft Creek Porphyry Cu-Mo-(Au) Deposit, Northwestern British Columbia, Exploration Mining Geology, 17:163-196.

Sinclair, W.D., 2007. Porphyry deposits, in Goodfellow, W.D., ed., Mineral Deposits of Canada: A Synthesis of Major Deposit-Types, District Metallogeny, the Evolution of Geological Provinces, and Exploration Methods: Geological Association of Canada, Mineral Deposits Division, Special Publication No. 5, p. 223-243.

Stewart, E., 2012. Property description WEI Report, Prepared by Elmer B. Stewart, President and Chief Executive Officer, Copper Fox Metals Inc., Provided to Tetra Tech on May 17, 2012.

WEBSITES

Copper Fox Metals Inc. website: www.copperfoxmetals.com

World Climate website: www.worldclimate.com


Ministry of Energy and Mines of British Columbia website: http://www.empr.gov.bc.ca/MINING/GEOSCIENCE/ARIS/BUILDMAPS/Pages/faq2.aspx


2 0 . 0 C E R T I F I C A T E O F Q U A L I F I E D P E R S O N

ROBERT SIN CLAIR MOR R ISON, PH.D., MAU SIMM (CP), P.GEO.

I, Robert Sinclair Morrison, Ph.D., MAusIMM (CP), P.Geo., of Toronto, Ontario, do hereby certify:

• I am a Lead Resource Geologist with Tetra Tech WEI Inc., with a business address at 900-330 Bay Street, Toronto, Ontario, Canada, M5H 2S8.

• This certificate applies to the technical report entitled “Technical Report and Resource Estimate on the Schaft Creek Cu-Au-Mo-Ag Project, BC, Canada”, dated May 23, 2012 (the “Technical Report”).

• I am a graduate of Acadia University, (B.Sc. 1981) and University of Adelaide (Ph.D. 1990). I am a Member in good standing of the Australasian Institute of Mining and Metallurgy (#11212), and I am registered as a Chartered Professional in Geology with the Australasian Institute of Mining and Metallurgy since 2004. I am a Member in good standing of the Association of Professional Geoscientists of Ontario (#1839) since 2010. My relevant experience with respect to deposit geology, ore body modelling and resource estimation includes 10 years with WMC Resources and Gold Fields Ltd as an Extensional Exploration Geologist, Senior Project Geologist, Resource Evaluation Geologist and Senior Resource Evaluation Geologist at the St Ives Gold Mine. I am a “Qualified Person” for purposes of National Instrument 43-101 (the “Instrument”).

• I have not completed a personal inspection of the Property.

• I am responsible for Sections 1 to 11, and 13 to 20 of the Technical Report.

• I am independent of Copper Fox Metals Inc. as defined by Section 1.5 of the Instrument.

• I have no prior involvement with the Property that is the subject of the Technical Report.

• I have read the Instrument and the sections of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.

• As of the date of this certificate, to the best of my knowledge, information and belief, the sections of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.


Signed and dated this 21st day of June, 2012 at Toronto, Ontario.

“Original document signed and sealed by Robert Sinclair Morrison, Ph.D., MAusIMM (CP), P.Geo. Robert Sinclair Morrison,Ph.D., MAusIMM (CP), P.Geo. Lead Resource Geologist Tetra Tech WEI Inc.


LAURA INARA KARR EI, M.SC., P.GEO.

I, Laura Inara Karrei, M.Sc., P.Geo., of Toronto, Ontario, do hereby certify:

• I am a Geologist with Tetra Tech WEI Inc., with a business address at 900-330 Bay Street, Toronto, Ontario, M5H 2S8.

• This certificate applies to the technical report entitled “Technical Report and Resource Estimate on the Schaft Creek Cu-Au-Mo-Ag Project, BC, Canada”, dated May 23, 2012 (the “Technical Report”).

• I am a graduate of Carleton University (B.Sc. 2007) and the University of Toronto (M.Sc. 2008). I am a member in good standing of the Association of Professional Geoscientists of Ontario (#1972) since 2011. My relevant experience with respect to mineral exploration includes working as Project Geologist with Noront Resources Ltd. for their Ring of Fire projects in the James Bay Lowlands of northern Ontario, and as a consulting Geologist for other various exploration companies. I have planned and executed early-stage and advanced-stage exploration programs on shear-hosted gold, magmatic massive sulphides, massive chromite, U-REE carbonatite and V-Ti ferrogabbro projects. I have also worked as an Assistant Underground Production Geologist for Goldcorp Inc. at the Red Lake Gold Mine. I am a “Qualified Person” for purposes of National Instrument 43-101 (the “Instrument”).

• My most recent personal inspection of the Property was on February 5, 2012 for two days.

• I am responsible for Section 12 of the Technical Report.

• I am independent of Copper Fox Metals Inc., as defined by Section 1.5 of the Instrument.

• I have no prior involvement with the Property that is the subject of the Technical Report.

• I have read the Instrument and the parts of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.

• As of the date of this certificate, to the best of my knowledge, information and belief, the parts of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Signed and dated this 21st of June, 2012 at Toronto, Ontario

“Original document signed and sealed by Laura Inara Karrei, M.Sc., P.Geo.

Laura Inara Karrei, M.Sc., P.Geo. Geologist Tetra Tech WEI Inc.

A P P E N D I X A

M I N E R A L T E N U R E S

of 5

Tenure Number Claim Name Issue Date Good To Date Area (ha)

Date CUU Reported/ Acquired

Reported by or Acquired From Mineral Titles Event

Purchase Price

Net Smelter Return Royalty

Partial NSR Buyout

CUU Shares

514595 2005/jun/16 2018/oct/30 1,653.04 2005/jun/16 Ablett Conversion - Schedule A514596 2005/jun/16 2018/oct/30 1,550.96 2005/jun/16 Ablett Conversion - Schedule A514598 2005/jun/16 2018/oct/30 1,412.62 2005/jun/16 Ablett Conversion - Schedule A514603 2005/jun/16 2018/oct/30 1,291.06 2005/jun/16 Ablett Conversion - Schedule A514637 2005/jun/17 2018/oct/30 1,256.71 2005/jun/17 Ablett Conversion - Schedule A514721 2005/jun/17 2018/oct/30 1,169.95 2005/jun/17 Ablett Conversion - Schedule ATeck Option Agreement 8,334.34

514723 2005/jun/17 2018/oct/30 139.75 2005/jun/17 Ablett Conversion - Guiziza 5514724 2005/jun/17 2018/oct/30 471.39 2005/jun/17 Ablett Conversion - Guiziza 4514725 2005/jun/17 2018/oct/30 313.61 2005/jun/17 Ablett Conversion - Guiziza 3514728 2005/jun/17 2018/oct/30 435.57 2005/jun/17 Ablett Conversion - Guiziza 1&2

515035 2005/jun/22 2018/oct/30 383.01 2005/jun/22 Ablett Cell Acquisition515036 2005/jun/22 2018/oct/30 191.65 2005/jun/22 Ablett Cell Acquisition

548487 BLOCK B1 2007/jan/02 2018/jan/15 434.78 2007/jan/02 Ablett Cell Acquisition548488 BLOCK B2 2007/jan/02 2018/jan/15 434.99 2007/jan/02 Ablett Cell Acquisition548489 BLOCK B3 2007/jan/02 2018/jan/15 365.57 2007/jan/02 Ablett Cell Acquisition548490 BLOCK B4 2007/jan/02 2018/jan/15 121.90 2007/jan/02 Ablett Cell Acquisition548492 BLOCK C1 2007/jan/02 2018/jan/15 435.60 2007/jan/02 Ablett Cell Acquisition548493 BLOCK C2 2007/jan/02 2018/jan/15 435.83 2007/jan/02 Ablett Cell Acquisition548494 BLOCK C3 2007/jan/02 2018/jan/15 436.06 2007/jan/02 Ablett Cell Acquisition548495 BLOCK C4 2007/jan/02 2018/jan/15 436.31 2007/jan/02 Ablett Cell Acquisition548496 BLOCK C5 2007/jan/02 2018/jan/15 436.70 2007/jan/02 Ablett Cell Acquisition548498 BLOCK C6 2007/jan/02 2018/jan/15 227.24 2007/jan/02 Ablett Cell Acquisition

548759 AREA A 2007/jan/05 2018/jan/15 365.06 2007/jan/05 Ablett Cell Acquisition548764 AREA B1 2007/jan/05 2018/jan/15 366.04 2007/jan/05 Ablett Cell Acquisition548766 AREA B2 2007/jan/05 2018/jan/15 418.11 2007/jan/05 Ablett Cell Acquisition548767 AREA B3 2007/jan/05 2018/jan/15 435.38 2007/jan/05 Ablett Cell Acquisition548768 AREA B4 2007/jan/05 2018/jan/15 435.60 2007/jan/05 Ablett Cell Acquisition548769 AREA B5 2007/jan/05 2018/jan/15 418.19 2007/jan/05 Ablett Cell Acquisition548770 AREA B6 2007/jan/05 2018/jan/15 418.19 2007/jan/05 Ablett Cell Acquisition548771 AREA B7 2007/jan/05 2018/jan/15 418.19 2007/jan/05 Ablett Cell Acquisition548772 AREA B8 2007/jan/05 2018/jan/15 418.19 2007/jan/05 Ablett Cell Acquisition548760 AREA C1 2007/jan/05 2018/jan/05 436.90 2007/jan/05 Ablett Cell Acquisition548761 AREA C2 2007/jan/05 2018/jan/05 437.12 2007/jan/05 Ablett Cell Acquisition

of 5




Purchase Price


Partial NSR Buyout

CUU Shares

548762 AREA C3 2007/jan/05 2018/jan/05 367.41 2007/jan/05 Ablett Cell Acquisition548763 AREA C4 2007/jan/05 2018/jan/05 122.54 2007/jan/05 Ablett Cell Acquisition

547789 2006/dec/21 2018/dec/21 418.70 2007/sep/26 Warren Bill of Sale Completion547798 2006/dec/21 2018/dec/21 227.00 2007/sep/26 Warren Bill of Sale Completion

551325 AREA D1 2007/feb/06 2018/feb/06 435.18 2007/sep/26 Salazar Bill of Sale Completion551326 AREA D2 2007/feb/06 2018/feb/06 435.17 2007/sep/26 Salazar Bill of Sale Completion551328 AREA D3 2007/feb/06 2018/feb/06 417.71 2007/sep/26 Salazar Bill of Sale CompletionAcquired by CUU 2005-2007 12,690.62

577025 SC SOUTH 1 2008/feb/23 2012/aug/23 437.83 2008/feb/23 Copper Fox Cell Acquisition577026 SC SOUTH 2 2008/feb/23 2012/aug/23 438.04 2008/feb/23 Copper Fox Cell Acquisition577028 SC SOUTH 3 2008/feb/23 2012/aug/23 438.24 2008/feb/23 Copper Fox Cell Acquisition577031 SC SOUTH 4 2008/feb/23 2012/aug/23 438.49 2008/feb/23 Copper Fox Cell Acquisition577033 SC SOUTH 5 2008/feb/23 2012/aug/23 438.73 2008/feb/23 Copper Fox Cell Acquisition577034 SC SOUTH 6 2008/feb/23 2012/aug/23 438.94 2008/feb/23 Copper Fox Cell Acquisition577037 SC SOUTH 7 2008/feb/23 2012/aug/23 439.02 2008/feb/23 Copper Fox Cell Acquisition577039 SC SOUTH 8 2008/feb/23 2012/aug/23 438.88 2008/feb/23 Copper Fox Cell Acquisition577042 SC SOUTH 9 2008/feb/23 2012/aug/23 438.90 2008/feb/23 Copper Fox Cell Acquisition

3,947.06

517462 2005/jul/12 2012/dec/30 17.44 2011/mar/18 Greig/Kreft Bill of Sale Completion569460 GREATER KOPPER 2007/nov/05 2012/dec/30 2,769.10 2011/mar/18 Greig/Kreft Bill of Sale Completion

2,786.53 $250,000 2% 1%/$1,500,000 1,250,000

521312 SCHAFT 1 2005/oct/18 2012/dec/30 191.78 2011/mar/31 Pembrook Mining Bill of Sale Completion191.78 $350,000 2% 1%/$1,500,000

854488 SILVER FOX 86 2011/may/13 2012/may/13 366.56 2011/sep/15 Marko/Mott Bill of Sale Completion854495 SILVER FOX 87 2011/may/13 2012/may/13 366.27 2011/sep/15 Marko/Mott Bill of Sale Completion854513 SILVER FOX 89 2011/may/14 2012/may/14 157.18 2011/sep/15 Marko/Mott Bill of Sale Completion854523 WHITE RABBIT 90 2011/may/14 2012/may/14 208.93 2011/sep/15 Marko/Mott Bill of Sale Completion854536 SILVER FOX 91 2011/may/14 2012/may/14 156.94 2011/sep/15 Marko/Mott Bill of Sale Completion855206 PTARMIGAN 93 2011/may/18 2012/may/18 208.77 2011/sep/15 Marko/Mott Bill of Sale Completion855207 PTARMIGAN 95 2011/may/18 2012/may/18 278.34 2011/sep/15 Marko/Mott Bill of Sale Completion855348 WHITE RABBIT 92 2011/may/21 2012/may/21 104.43 2011/sep/15 Marko/Mott Bill of Sale Completion

of 5




Purchase Price


Partial NSR Buyout

CUU Shares

855461 PTARMIGAN 97 2011/may/24 2012/may/24 104.37 2011/sep/15 Marko/Mott Bill of Sale Completion855735 WHITE RABBIT 101 2011/may/26 2012/may/26 191.50 2011/sep/15 Marko/Mott Bill of Sale Completion855736 WHITE RABBIT 102 2011/may/26 2012/may/26 139.31 2011/sep/15 Marko/Mott Bill of Sale Completion855842 PTARMIGAN 103 2011/may/27 2012/may/27 104.39 2011/sep/15 Marko/Mott Bill of Sale Completion855868 TERN 120 2011/may/30 2012/may/30 295.40 2011/sep/15 Marko/Mott Bill of Sale Completion855869 TERN 121 2011/may/30 2012/may/30 34.75 2011/sep/15 Marko/Mott Bill of Sale Completion855872 TERN 103 2011/may/30 2012/may/30 138.75 2011/sep/15 Marko/Mott Bill of Sale Completion856232 SILVER FOX 118 2011/jun/03 2012/jun/03 139.73 2011/sep/15 Marko/Mott Bill of Sale Completion856238 SILVER FOX 119 2011/jun/03 2012/jun/03 157.23 2011/sep/15 Marko/Mott Bill of Sale Completion856450 ELK 151 2011/jun/08 2012/jun/08 105.02 2011/sep/15 Marko/Mott Bill of Sale Completion856464 ELK 152 2011/jun/08 2012/jun/08 69.98 2011/sep/15 Marko/Mott Bill of Sale Completion856487 ELK152 2011/jun/09 2012/jun/09 157.52 2011/sep/15 Marko/Mott Bill of Sale Completion856673 ELK 153 2011/jun/10 2012/jun/10 174.99 2011/sep/15 Marko/Mott Bill of Sale Completion857427 ELK 154 2011/jun/21 2012/jun/21 279.93 2011/sep/15 Marko/Mott Bill of Sale Completion857428 ELK 155 2011/jun/21 2012/jun/21 70.00 2011/sep/15 Marko/Mott Bill of Sale Completion857528 ELK 156 2011/jun/22 2012/jun/22 122.49 2011/sep/15 Marko/Mott Bill of Sale Completion862647 ELK 158 2011/jul/04 2012/jul/04 140.01 2011/sep/15 Marko/Mott Bill of Sale Completion865007 TERN 125 2011/jul/07 2012/jul/07 243.13 2011/sep/15 Marko/Mott Bill of Sale Completion865167 TERN 127 2011/jul/08 2012/jul/08 242.96 2011/sep/15 Marko/Mott Bill of Sale Completion865328 ELK 166 2011/jul/09 2012/jul/09 175.03 2011/sep/15 Marko/Mott Bill of Sale Completion865619 ELK 167 2011/jul/11 2012/jul/11 140.05 2011/sep/15 Marko/Mott Bill of Sale Completion866050 TERN 128 2011/jul/13 2012/jul/13 104.25 2011/sep/15 Marko/Mott Bill of Sale Completion866517 TERN 130 2011/jul/18 2012/jul/18 138.78 2011/sep/15 Marko/Mott Bill of Sale Completion866518 TERN 131 2011/jul/18 2012/jul/18 208.14 2011/sep/15 Marko/Mott Bill of Sale Completion866536 TERN 132 2011/jul/18 2012/jul/18 208.01 2011/sep/15 Marko/Mott Bill of Sale Completion866630 TERN 131 2011/jul/19 2012/jul/19 51.99 2011/sep/15 Marko/Mott Bill of Sale Completion866669 TERN 133 2011/jul/20 2012/jul/20 69.35 2011/sep/15 Marko/Mott Bill of Sale Completion866670 TERN 134 2011/jul/20 2012/jul/20 34.72 2011/sep/15 Marko/Mott Bill of Sale Completion866671 TERN 135 2011/jul/20 2012/jul/20 17.33 2011/sep/15 Marko/Mott Bill of Sale Completion866677 TERN 135 2011/jul/20 2012/jul/20 17.33 2011/sep/15 Marko/Mott Bill of Sale Completion866678 TERN 136 2011/jul/20 2012/jul/20 86.82 2011/sep/15 Marko/Mott Bill of Sale Completion866889 TERN 137 2011/jul/20 2012/jul/20 17.34 2011/sep/15 Marko/Mott Bill of Sale Completion884429 GOLD BEAR 2011/aug/07 2012/aug/07 87.10 2011/sep/15 Marko/Mott Bill of Sale Completion

6,115.11 $20,000 2% 1%/$1,000,000 25,200

895838 EAGLE 800 2011/sep/01 2012/sep/01 245.20 2012/mar/14 Marko/Mott Bill of Sale Completion895839 EAGLE 801 2011/sep/01 2012/sep/01 332.73 2012/mar/14 Marko/Mott Bill of Sale Completion895840 EAGLE 802 2011/sep/01 2012/sep/01 157.56 2012/mar/14 Marko/Mott Bill of Sale Completion

of 5




Purchase Price


Partial NSR Buyout

CUU Shares

895841 EAGLE 803 2011/sep/01 2012/sep/01 315.27 2012/mar/14 Marko/Mott Bill of Sale Completion895842 EAGLE 804 2011/sep/01 2012/sep/01 175.06 2012/mar/14 Marko/Mott Bill of Sale Completion896151 EAGLE 805 2011/sep/06 2012/sep/06 52.52 2012/mar/14 Marko/Mott Bill of Sale Completion896152 EAGLE 806 2011/sep/06 2012/sep/06 35.02 2012/mar/14 Marko/Mott Bill of Sale Completion896353 EAGLE 807 2011/sep/09 2012/sep/09 140.08 2012/mar/14 Marko/Mott Bill of Sale Completion896516 EAGLE 808 2011/sep/11 2012/sep/11 140.07 2012/mar/14 Marko/Mott Bill of Sale Completion896517 EAGLE 809 2011/sep/11 2012/sep/11 105.05 2012/mar/14 Marko/Mott Bill of Sale Completion900649 EAGLE 810 2011/sep/25 2012/sep/25 210.14 2012/mar/14 Marko/Mott Bill of Sale Completion908069 TERN AROUND 2011/oct/08 2012/oct/08 69.50 2012/mar/14 Marko/Mott Bill of Sale Completion910209 TERN AROUND 2011/oct/12 2012/oct/12 121.46 2012/mar/14 Marko/Mott Bill of Sale Completion910229 TERN AROUND 2011/oct/12 2012/oct/12 121.55 2012/mar/14 Marko/Mott Bill of Sale Completion927669 TERN LEFT 2011/nov/01 2012/nov/01 69.51 2012/mar/14 Marko/Mott Bill of Sale Completion928489 TERN WEST 2011/nov/08 2012/nov/08 69.49 2012/mar/14 Marko/Mott Bill of Sale Completion936631 EAGLE 815 2011/dec/07 2012/dec/07 262.10 2012/mar/14 Marko/Mott Bill of Sale Completion946510 EAGLE 816 2012/feb/06 2013/feb/06 384.35 2012/mar/14 Marko/Mott Bill of Sale Completion949269 EAGLE 812 2012/feb/14 2013/feb/14 262.89 2012/mar/14 Marko/Mott Bill of Sale Completion949270 EAGLE 811 2012/feb/14 2013/feb/14 315.47 2012/mar/14 Marko/Mott Bill of Sale Completion950890 EAGLE 814 2012/feb/20 2013/feb/20 105.06 2012/mar/14 Marko/Mott Bill of Sale Completion952292 EAGLE 813 2012/feb/23 2013/feb/23 438.15 2012/mar/14 Marko/Mott Bill of Sale Completion952293 EAGLE 817 2012/feb/23 2013/feb/23 350.34 2012/mar/14 Marko/Mott Bill of Sale Completion953131 EAGLE 818 2012/feb/27 2013/feb/27 263.01 2012/mar/14 Marko/Mott Bill of Sale Completion

4,741.55 $25,000 2% 1%/$1,000,000

880149 BONANZA 2011/aug/03 2012/aug/03 350.26 2012/mar/13 Ruza Bill of Sale Completion $7,000 1% $250,000880189 BONANZA1 2011/aug/03 2012/aug/03 350.42 2012/mar/13 Ruza Bill of Sale Completion

700.68

955309 TERN NORTH 2012/mar/04 2013/mar/04 225.3319 2012/may/01 Marko/Mott Bill of Sale Completion961029 NORTH TERN 2 2012/mar/13 2013/mar/13 416.2977 2012/may/01 Marko/Mott Bill of Sale Completion961049 NORT TERN 3 2012/mar/13 2013/mar/13 381.9542 2012/may/01 Marko/Mott Bill of Sale Completion961110 SILVER EAGLE 900 2012/mar/13 2013/mar/13 280.4076 2012/may/01 Marko/Mott Bill of Sale Completion964509 SILVER EAGLE 902 2012/mar/16 2013/mar/16 140.1358 2012/may/01 Marko/Mott Bill of Sale Completion964529 SILVER EAGLE 903 2012/mar/16 2013/mar/16 332.823 2012/may/01 Marko/Mott Bill of Sale Completion965029 SILVER EAGLE 901 2012/mar/17 2013/mar/17 105.2024 2012/may/01 Marko/Mott Bill of Sale Completion968529 SILVER EAGLE 904 2012/mar/21 2013/mar/21 367.9731 2012/may/01 Marko/Mott Bill of Sale Completion969349 SILVER EAGLE 905 2012/mar/21 2013/mar/21 385.2511 2012/may/01 Marko/Mott Bill of Sale Completion969369 SILVER EAGLE 906 2012/mar/21 2013/mar/21 140.183 2012/may/01 Marko/Mott Bill of Sale Completion970769 SILVER RABBIT 2012/mar/24 2013/mar/24 435.0489 2012/may/01 Marko/Mott Bill of Sale Completion

of 5




Purchase Price


Partial NSR Buyout

CUU Shares

970789 SILVER RABBIT 2 2012/mar/24 2013/mar/24 347.9524 2012/may/01 Marko/Mott Bill of Sale Completion971953 TERN SOUTH 2012/mar/26 2013/mar/26 208.6899 2012/may/01 Marko/Mott Bill of Sale Completion971956 TERN SOUTH 2 2012/mar/26 2013/mar/26 382.3436 2012/may/01 Marko/Mott Bill of Sale Completion971957 TERN SOUTH 3 2012/mar/26 2013/mar/26 104.355 2012/may/01 Marko/Mott Bill of Sale Completion978394 SOUTH TERN 4 2012/apr/06 2013/apr/06 260.8388 2012/may/01 Marko/Mott Bill of Sale Completion

4,514.79 $25,000 2% 1%/$1,000,000

866909 JUSKATLA RESOURCES 2 2011/jul/20 2012/jul/20 104.2799 2012/may/14 Patterson Bill of Sale Completion900609 JUSKATLA RESOURCES 3 2011/sep/25 2012/sep/25 17.3566 2012/may/14 Patterson Bill of Sale Completion900629 JUSKATLA RESOURCE 4 2011/sep/25 2012/sep/25 34.6717 2012/may/14 Patterson Bill of Sale Completion903029 JUSKATLA RESOURCES 5 2011/sep/28 2012/sep/28 17.3584 2012/may/14 Patterson Bill of Sale Completion903049 JUSKATL RESOIURCES 6 2011/sep/28 2012/sep/28 17.3308 2012/may/14 Patterson Bill of Sale Completion903069 JUSKATLA RESOURCES 7 2011/sep/28 2012/sep/28 34.6917 2012/may/14 Patterson Bill of Sale Completion903089 JUSKATLA RESOURCES 8 2011/sep/28 2012/sep/28 17.3742 2012/may/14 Patterson Bill of Sale Completion

243.0633 $5,000

Total CUU Mineral Tenures 44,265.52

A P P E N D I X B

G E O L O G I C A L M A P S

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NFOXmetals inc.

copper

copper

metals inc.

Volcanoclastics, includes, tuff, lapilli tuff, breccia and derived sediments. Stuhini Group, lateTriassic.,

Breccia Inclusion Lithology

Feldspar Quartz Porphyry - Hickman Suite

Felsic Intrusive - Hickman Suite

Andesite - Stuhini Group

Hematite Alteration - moderate to strong

Epidote Alteration - moderate to strong

Malachite Staining - minor to moderate

Chlorite Alteration - moderate to strong

Gossan - strong rusting, oxidation

Alteration

Structure

Fault Zone-Shear Zone (dip)

Fault (dip)

Intense Fracturing

Primary Trails

River Channels

Lakes

Swamps

Buildings

Runway

Symbols

NAD 83 UTM Grid

UTM 9V, NAD 83, 200 METER GRID

Grid Legend

0 50 100 150 200 meters

SCALE 1:5000

Topographic Contour Spacing: 5m

Copper Fox Metals, 2005: 15 holes, 3,160 metersC234

Diamond Drill Holes

T184 Teck Corp, 1980-1981: 118 holes, 26,000 meters

H69 Hecla Mining Co., 1968-77: 76 holes, 34,500 meters

P5 Hecla-Paramount, 1968-73: 11 holes, 2,852 meters

A23 Asarco, 1966-67: 26 holes, 4,268 meters

S2 Silver Standard, pre 1966: 3 holes, 628 meters

C253 Copper Fox Metals, 2006: 42 holes, 9,009 meters


LEGEND

Lithology

Feldspar-Quartz Porphyry, related to Hickman batholith,late phase. Late Triassic to early Jurassic.

Andesite volcanics, Stuhini Group, late Triassic.

Augite Porphyry, lower Stuhini Group, late Triassic.

Mafic/Intermediate Dike. Phyric - aphyric andesite tobasalt +- pyroxene. Tertiary and older.

Diorite, related to Hickman Pluton, outer margin. Late Triassic to early Jurassic.

Hickman batholith, suite of intrusive rocks,monzonite, quartz monzonite, granodiorite. Late Triassic to early Jurassic.

Tourmaline Breccia, quartz-epidote-chlorite-tourmaline pyrite matrix with xenoliths of feldspar-quartz porphyry,granodiorite and andesitic rocks. Late Triassic to earlyJurassic.

LTSap

LTSav

LTSvs

LTHgr

LTHdr

LTHfqp

EJtbx

Tmid

Outcrop with indicated dominant lithology


Geological PlanBedrock

SCHAFT CREEK DEPOSIT

October 2007

NTS 104 G/6 & 7 57- 22 N lat / 131-00 W long

Comp and CAD by:W.Hanych and S.Ewanchuk

Scale 1:5000Mapping by: W.Hanych and S.Ewanchuk

Vein systems, includes stockworks, sets, crackle veins of of quartz, chlorite, carbonate and sulphide. Late Triassic early to Jurassic.

LTvns

Figure D-1

SADDLE FAULT

PA

RA

MO

UN

T FA

ULT

LIARD FAULT

380 000 E 380 200 E 380 400 E 380 600 E 380 800 E379 800 E379 600 E379 400 E379 200 E379 000 E378 800 E378 600 E

6 359 800 N

6 359 600 N

6 359 400 N

6 359 200 N

6 359 000 N

6 358 800 N

6 358 600 N

6 358 400 N

6 358 200 N

6 360 000 N

6 360 200 N

6 360 400 N

6 360 600 N

6 360 800 N

6 361 000 N

6 361 200 N

6 361 600 N

380 000 E 380 200 E 380 400 E 380 600 E 380 800 E379 800 E379 600 E379 400 E379 200 E379 000 E378 800 E378 600 E

6 359 800 N

6 359 600 N

6 359 400 N

6 359 200 N

6 359 000 N

6 358 800 N

6 358 600 N

6 358 400 N

6 358 200 N

6 360 000 N

6 360 200 N

6 360 400 N

6 360 600 N

6 360 800 N

6 361 000 N

6 361 200 N

6 361 400 N

6 361 600 N

381 000 E 381 100 E

6 361 800 N

6 362 000 N

6 361 400 N

6 361 800 N

6 362 000 N

381 000 E 381 200 E

6 358 000 N

6 357 800 N

6 358 000 N

6 357 800 N

29000N

28000N

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25000N

24000N

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7000

E

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E

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E

1000

0E

1100

0E

7000

E

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E

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E

1000

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1100

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0E

29000N

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6000

E

Snipe Lake

41

?

65

30

88

88

84

40

7467

60

80

76 85

63

63

40

60

60

80

72

70

80

S1

S3

S2

A27A24

A16

A19A18

A14

A11A12

A26

A13

A20 A23

A25

A5

A4

A7A6

A15

A8A9

A10

A17

A21

A22

A3

P1P2

P3P5

P4P6

P7

P8P9

P10

P11

H90 H91H92

H89

H97

H37

H83

H81

H74

H87

H79H78

H66

H68 H70

H46H47

H77 H76

H86

H72 H84

H45

H40

H32

H75H69H63

H43

H57

H51

H49H50

H60H30

H99

H59H101H98H41

H31

H34 H100

H55

H48H35

H58 H65H36

H42

H39 H38

H110

H62 H33

H67 H64 H82 H85

H94H95

H53H102

H93H52

H61H71 H88 H44

H103 H96 H73

H80

H54

H104

H56H14

T217

T112

T105

T158

T109

T160 T163T192

T114

T119

T116

T182T181T172

T169

T155

T133T164

T165T168

T171

T174

T137

T175

T135

T150

T154

T157

T184

T126T115

T180T179

T156

T178 T177

T195

T152 T162

T170

T166T167

T190

T176T173 T183

T122

T223 T222

T221

T193

T220

T107

T106

T111

T218

T108

T219

T129T113

T185T151

T153

T200

T159T161

T191

T196

T140

T189

T197

T188

T198

T187

T194

T186

T199T125

T131

T120

T117

T147

T143 T128

T134

T144

T123

T201

T149

T136

T148

T138 T204

T142T203

T146 T139

T118

T141

T208T210 T213

T206T121 T209

T132

T202

T124 T145

T130

T205 T207 T211 T216

T212T215 T214

T127

C234

C235C236

C237

C238

C239

C240

C241C242

C243

C244

C245

C246

C247

C248

C251

C250

C252

C253

C254

C255

C256

C257

C258

C259

C260

C261

C262

C263

C264C265

CH266CH267

C271C270

C249

C272C273

C274C275

C276C277

C278

C279

C280

C281

C282

C283

C284

C285

C287

C288

C289

C290

C286

C268

C269

C299

C291

C300

C294

C297

C302

C292

C310

C295

C305

C293

C307

C296

C298

C311

C315

C314

C313

C312

C301C309

C303C308

C306

C304

C316

C319

C320

C317

C320A

860

850830

870

960

920

970

1060

1060

1020

1100

1100

1160

1200

1180

1260

1240

1230

1220

1310

1280

1270

1350

1330

1320

1400

1410

1390

1390

1460

1450

1440

1430

1470

1480

1500 1550

1550

1540

1520

1570

1590 1580

1640

1650

1620

1710

17001680

1680

1750

1790

1810

1770

1770

1770

1770

1820

1630

1780

1810

840

840

840

840

850

860

860

860

860

870

870

880

880

890

890

900

900

900

910

910

920

920

920

930

94 0

940

940

940

940

960

960

960

960

970

970

980

1000

1010

1010

1020

1040

1040

1050

1050

1060

1060

1060

1060

1080

1090

1090

1100

1110

1120

1130

1130

1130

1160

1160

1170

1170

1180

1190

1190

1220

1220

1230

1240

1240

1240

1250

12 60

1270

1290

1290

1290

1290

1300

1320

1320

1340

1340

1340

1350

1350

1360

1360

1370

1380

1380

1390

1400

1400

1400

1410

1410

1410

1410

1410

1420

1420

1440

1450

1450

1460

1460

1470

1480

1490

1490

1490

1500

1510

1520

1520

1520

1530

1540

1540

1550

1580

1580

1600

1600

1600

1610

1620

1630

1640

1650

1650

1660

1660

1680

1690

1710

17 20

1720

1740

1740

1760

1730

850

880

900

900

900

890

880

880

860

1730

1720

1670

1620

1580

1560

1550

1540

1470

1450

1440

1370

1370

13501290

1270

1240

1260

1230

950

1060

1140

12401200

1130

1120

1100

1070

1060

1060

1050

1030

1020

1020

1020

1000

990

990

970

970

970

960

960

960

950

940

940

930

920

920

880

1160

1190

1180

1200

1190

1170

1220

1260

1250

1230

1220

1310

1280

1360

1330

1320

1390

1440

1450

1420

1510

1490

1470

1550

1620

840

840

850

850

850

850

850

860

860

860

860

860

860

860

860

870

870

870

870

870

870

870

870

870

870

880

880

880

880

880

880

880

880

890

890

890

890

890

890

890

890

900

900

900

900

900

900

900

910

910

910

910

910

910

920

920

920920

930

93 0

930

930

930

930

930

930

940

940

940

940

940

940

940

940

940

940

940

950

950

950

950

950

950

960

960

960

960

960

960960

960

960

96 0

960

970

970

980

980990

990

990

990

990

1000

1000

1000

1010

1010

1010

1010

1020

1020

1020

1020

1020

1030

104 0

1040

10501050

1060

1060

1060

1060

1060

1070

1070

10701070

1070

1080

1080

1080

1080

1090

10 90

1090

1100

1110

1120

1120

1130

1130

1130

1140

1140

1150

1160

1160

1160

1160

1170

1170

1170

1170

1170

1180

1180

1180

1180

1180

1180

1190

1190

1190

1200

1200

1200

1220

1220

1220

1220

1220

1230

1230

1230

1230

12 30

1240

1240

1250

1260

1260

1270

1270

1270

1280

1280

1290

1290

1300

1310

1310

1320

1330

1330

1330

1340

1340

1360

1370

1370

1 42 0

1450

1490

960

890

890

870

890

870

960

1350

1350

1470

1440

840

NFOXmetals inc.

copper

copper

metals inc.











Alteration

Structure


Fault (dip)

Intense Fracturing

Primary Trails

River Channels

Lakes

Swamps

Buildings

Runway

Symbols

NAD 83 UTM Grid


Grid Legend

0 50 100 150 200 meters

SCALE 1:5000



Diamond Drill Holes








LEGEND

Lithology








LTSap

LTSav

LTSvs

LTHgr

LTHdr

LTHfqp

EJtbx

Tmid

Outcrop with indicated dominant lithology


Geological Plan and Projection toBedrock of Vein Systems


October 2007

NTS 104 G/6 & 7 57- 22 N lat / 131-00 W long




LTvns

Figure D-2

SADDLE FAULT

PA

RA

MO

UN

T FA

ULT

LIARD FAULT

380 000 E 380 200 E 380 400 E 380 600 E 380 800 E379 800 E379 600 E379 400 E379 200 E379 000 E378 800 E378 600 E

6 359 800 N

6 359 600 N

6 359 400 N

6 359 200 N

6 359 000 N

6 358 800 N

6 358 600 N

6 358 400 N

6 358 200 N

6 360 000 N

6 360 200 N

6 360 400 N

6 360 600 N

6 360 800 N

6 361 000 N

6 361 200 N

6 361 600 N

380 000 E 380 200 E 380 400 E 380 600 E 380 800 E379 800 E379 600 E379 400 E379 200 E379 000 E378 800 E378 600 E

6 359 800 N

6 359 600 N

6 359 400 N

6 359 200 N

6 359 000 N

6 358 800 N

6 358 600 N

6 358 400 N

6 358 200 N

6 360 000 N

6 360 200 N

6 360 400 N

6 360 600 N

6 360 800 N

6 361 000 N

6 361 200 N

6 361 400 N

6 361 600 N

381 000 E 381 100 E

6 361 800 N

6 362 000 N

6 361 400 N

6 361 800 N

6 362 000 N

381 000 E 381 200 E

6 358 000 N

6 357 800 N

6 358 000 N

6 357 800 N

29000N

28000N

27000N

26000N

25000N

24000N

23000N

22000N

21000N

7000

E

8000

E

9000

E

1000

0E

1100

0E

7000

E

8000

E

9000

E

1000

0E

1100

0E

1200

0E

29000N

28000N

27000N

26000N

25000N

24000N

23000N

22000N

21000N

6000

E

Snipe Lake

41

?

65

30

88

88

84

40

7467

60

80

76 85

63

63

40

60

60

80

72

70

80

S1

S3

S2

A27A24

A16

A19A18

A14

A11A12

A26

A13

A20 A23

A25

A5

A4

A7A6

A15

A8A9

A10

A17

A21

A22

A3

P1P2

P3P5

P4P6

P7

P8P9

P10

P11

H90 H91H92

H89

H97

H37

H83

H81

H74

H87

H79H78

H66

H68 H70

H46H47

H77 H76

H86

H72 H84

H45

H40

H32

H75H69H63

H43

H57

H51

H49H50

H60H30

H99

H59H101H98H41

H31

H34 H100

H55

H48H35

H58 H65H36

H42

H39 H38

H110

H62 H33

H67 H64 H82 H85

H94H95

H53H102

H93H52

H61H71 H88 H44

H103 H96 H73

H80

H54

H104

H56H14

T217

T112

T105

T158

T109

T160 T163T192

T114

T119

T116

T182T181T172

T169

T155

T133T164

T165T168

T171

T174

T137

T175

T135

T150

T154

T157

T184

T126T115

T180T179

T156

T178 T177

T195

T152 T162

T170

T166T167

T190

T176T173 T183

T122

T223 T222

T221

T193

T220

T107

T106

T111

T218

T108

T219

T129T113

T185T151

T153

T200

T159T161

T191

T196

T140

T189

T197

T188

T198

T187

T194

T186

T199T125

T131

T120

T117

T147

T143 T128

T134

T144

T123

T201

T149

T136

T148

T138 T204

T142T203

T146 T139

T118

T141

T208T210 T213

T206T121 T209

T132

T202

T124 T145

T130

T205 T207 T211 T216

T212T215 T214

T127

C234

C235C236

C237

C238

C239

C240

C241C242

C243

C244

C245

C246

C247

C248

C251

C250

C252

C253

C254

C255

C256

C257

C258

C259

C260

C261

C262

C263

C264C265

CH266CH267

C271C270

C249

C272C273

C274C275

C276C277

C278

C279

C280

C281

C282

C283

C284

C285

C287

C288

C289

C290

C286

C268

C269

C299

C291

C300

C294

C297

C302

C292

C310

C295

C305

C293

C307

C296

C298

C311

C315

C314

C313

C312

C301C309

C303C308

C306

C304

C316

C319

C320

C317

C320A

860

850830

870

960

920

970

1060

1060

1020

1100

1100

1160

1200

1180

1260

1240

1230

1220

1310

1280

1270

1350

1330

1320

1400

1410

1390

1390

1460

1450

1440

1430

1470

1480

1500 1550

1550

1540

1520

1570

1590 1580

1640

1650

1620

1710

17001680

1680

1750

1790

1810

1770

1770

1770

1770

1820

1630

1780

1810

840

840

840

840

850

860

860

860

860

870

870

880

880

890

890

900

900

900

910

910

920

920

920

930

94 0

940

940

940

940

960

960

960

960

970

970

980

1000

1010

1010

1020

1040

1040

1050

1050

1060

1060

1060

1060

1080

1090

1090

1100

1110

1120

1130

1130

1130

1160

1160

1170

1170

1180

1190

1190

1220

1220

1230

1240

1240

1240

1250

12 60

1270

1290

1290

1290

1290

1300

1320

1320

1340

1340

1340

1350

1350

1360

1360

1370

1380

1380

1390

1400

1400

1400

1410

1410

1410

1410

1410

1420

1420

1440

1450

1450

1460

1460

1470

1480

1490

1490

1490

1500

1510

1520

1520

1520

1530

1540

1540

1550

1580

1580

1600

1600

1600

1610

1620

1630

1640

1650

1650

1660

1660

1680

1690

1710

17 20

1720

1740

1740

1760

1730

850

880

900

900

900

890

880

880

860

1730

1720

1670

1620

1580

1560

1550

1540

1470

1450

1440

1370

1370

13501290

1270

1240

1260

1230

950

1060

1140

12401200

1130

1120

1100

1070

1060

1060

1050

1030

1020

1020

1020

1000

990

990

970

970

970

960

960

960

950

940

940

930

920

920

880

1160

1190

1180

1200

1190

1170

1220

1260

1250

1230

1220

1310

1280

1360

1330

1320

1390

1440

1450

1420

1510

1490

1470

1550

1620

840

840

850

850

850

850

850

860

860

860

860

860

860

860

860

870

870

870

870

870

870

870

870

870

870

880

880

880

880

880

880

880

880

890

890

890

890

890

890

890

890

900

900

900

900

900

900

900

910

910

910

910

910

910

920

920

920920

930

93 0

930

930

930

930

930

930

940

940

940

940

940

940

940

940

940

940

940

950

950

950

950

950

950

960

960

960

960

960

960960

960

960

96 0

960

970

970

980

980990

990

990

990

990

1000

1000

1000

1010

1010

1010

1010

1020

1020

1020

1020

1020

1030

104 0

1040

10501050

1060

1060

1060

1060

1060

1070

1070

10701070

1070

1080

1080

1080

1080

1090

10 90

1090

1100

1110

1120

1120

1130

1130

1130

1140

1140

1150

1160

1160

1160

1160

1170

1170

1170

1170

1170

1180

1180

1180

1180

1180

1180

1190

1190

1190

1200

1200

1200

1220

1220

1220

1220

1220

1230

1230

1230

1230

12 30

1240

1240

1250

1260

1260

1270

1270

1270

1280

1280

1290

1290

1300

1310

1310

1320

1330

1330

1330

1340

1340

1360

1370

1370

1 42 0

1450

1490

960

890

890

870

890

870

960

1350

1350

1470

1440

840

NFOXmetals inc.

copper

copper

metals inc.











Alteration

Structure


Fault (dip)

Intense Fracturing

Primary Trails

River Channels

Lakes

Swamps

Buildings

Runway

Symbols

NAD 83 UTM Grid


Grid Legend

0 50 100 150 200 meters

SCALE 1:5000



Diamond Drill Holes








LEGEND

Lithology








LTSap

LTSav

LTSvs

LTHgr

LTHdr

LTHfqp

EJtbx

Tmid

Outcrop with indicated dominant lithology and ID


Geological PlanBedrock


October 2007

NTS 104 G/6 & 7 57- 22 N lat / 131-00 W long




LTvns

Figure D-3

67

SADDLE FAULT

PA

RA

MO

UN

T FA

ULT

LIARD FAULT

380 000 E 380 200 E 380 400 E 380 600 E 380 800 E379 800 E379 600 E379 400 E379 200 E379 000 E378 800 E378 600 E

6 359 800 N

6 359 600 N

6 359 400 N

6 359 200 N

6 359 000 N

6 358 800 N

6 358 600 N

6 358 400 N

6 358 200 N

6 360 000 N

6 360 200 N

6 360 400 N

6 360 600 N

6 360 800 N

6 361 000 N

6 361 200 N

6 361 600 N

380 000 E 380 200 E 380 400 E 380 600 E 380 800 E379 800 E379 600 E379 400 E379 200 E379 000 E378 800 E378 600 E

6 359 800 N

6 359 600 N

6 359 400 N

6 359 200 N

6 359 000 N

6 358 800 N

6 358 600 N

6 358 400 N

6 358 200 N

6 360 000 N

6 360 200 N

6 360 400 N

6 360 600 N

6 360 800 N

6 361 000 N

6 361 200 N

6 361 400 N

6 361 600 N

381 000 E 381 100 E

6 361 800 N

6 362 000 N

6 361 400 N

6 361 800 N

6 362 000 N

381 000 E 381 200 E

6 358 000 N

6 357 800 N

6 358 000 N

6 357 800 N

Snipe Lake

41

?

65

30

88

88

84

40

7467

60

80

76 85

63

63

40

60

60

80

72

70

80

S1

S3

S2

A27A24

A16

A19A18

A14

A11A12

A26

A13

A20 A23

A25

A5

A4

A7A6

A15

A8A9

A10

A17

A21

A22

A3

P1P2

P3P5

P4P6

P7

P8P9

P10

P11

H90 H91H92

H89

H97

H37

H83

H81

H74

H87

H79H78

H66

H68 H70

H46H47

H77 H76

H86

H72 H84

H45

H40

H32

H75H69H63

H43

H57

H51

H49H50

H60H30

H99

H59H101H98H41

H31

H34 H100

H55

H48H35

H58 H65H36

H42

H39 H38

H110

H62 H33

H67 H64 H82 H85

H94H95

H53H102

H93H52

H61H71 H88 H44

H103 H96 H73

H80

H54

H104

H56H14

T217

T112

T105

T158

T109

T160 T163T192

T114

T119

T116

T182T181T172

T169

T155

T133T164

T165T168

T171

T174

T137

T175

T135

T150

T154

T157

T184

T126T115

T180T179

T156

T178 T177

T195

T152 T162

T170

T166T167

T190

T176T173 T183

T122

T223 T222

T221

T193

T220

T107

T106

T111

T218

T108

T219

T129T113

T185T151

T153

T200

T159T161

T191

T196

T140

T189

T197

T188

T198

T187

T194

T186

T199T125

T131

T120

T117

T147

T143 T128

T134

T144

T123

T201

T149

T136

T148

T138 T204

T142T203

T146 T139

T118

T141

T208T210 T213

T206T121 T209

T132

T202

T124 T145

T130

T205 T207 T211 T216

T212T215 T214

T127

C234

C235C236

C237

C238

C239

C240

C241C242

C243

C244

C245

C246

C247

C248

C251

C250

C252

C253

C254

C255

C256

C257

C258

C259

C260

C261

C262

C263

C264C265

CH266CH267

C271C270

C249

C272C273

C274C275

C276C277

C278

C279

C280

C281

C282

C283

C284

C285

C287

C288

C289

C290

C286

C268

C269

C299

C291

C300

C294

C297

C302

C292

C310

C295

C305

C293

C307

C296

C298

C311

C315

C314

C313

C312

C301C309

C303C308

C306

C304

C316

C319

C320

C317

C320A

21

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

2122

23

24

25

26

27

28

293031

32

33

34

35

36

37

38

39

40

41 42

4344

45

46

47

4849

50

51

5253

54

55

56

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58

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6061

62

63

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69

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75 76

7778

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83

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89

90

9192

93

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96

97

98

104

103

101

102

100

99

105

106

116

117118

119

120

121

122

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124

132

137

107

108

109110

111 112

113 114115

125

126

127

128

130

131

133 134135

136

129

A P P E N D I X C

S C H A F T C R E E K D A T A M I N E M A C R O M A Y 2 0 1 2

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################################################################### # # Tetra Tech Wardrop # Toronto, Ontario # # Block Model Resource Estimation # For # Copper Fox Resources Limited # ############################################################ # # Version 1: April 4, 2012 # Version 2: April 20, 2012 - addition of alteration domains # Version 3: May 01, 2012 - changing indicator wireframes... # ################################################################### # By # Robert Morrison # ################################################################### # This macro creates the # (1) desurveyed drill hole file, # (2) block model, and then does an # (3) estimate with the block model. # # Estimates Cu, Mo, Au and Ag grade into the cells. # #___________________________________________________________________ # # Files In: # --------- # Drill hole data - collar, survey, assay and litho # # Wireframes are listed in the NI43-101 resource report. # # Files Out: # ---------- # holes1-d - raw drill holes # ore1_tc-d - raw drill holes with top cuts applied # ore1_tc-c - composited drill holes with top cuts applied # waste-m (waste model) # ore-m (pre-mineralized block model with sub-cells) # # ################################################################## ############################################################## # # CREATE DRILLHOLE FILE # ###############################################################

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!START drill !HOLES3D &COLLAR(cf_collar),&SURVEY(cf_survey), &SAMPLE1(cf_assay),&SAMPLE2(density),&OUT(holes1-d), *BHID(BHID),*XCOLLAR(XCOLLAR),*YCOLLAR(YCOLLAR), *ZCOLLAR(ZCOLLAR),*FROM(FROM),*TO(TO),*AT(AT), *BRG(AZIMUTH),*DIP(DIP),@SURVSMTH=1.0,@ENDPOINT=0.0, @DIPMETH=-1.0 !EXTRA &IN(holes1-d),&OUT(xxholes1-d),@APPROX=0.0 Cu_1 = (cu_pct*2.97*22.0462) Cu_2 = (mo_pct*0.609*16.80*22.0462) Cu_3 = (au_gt*0.706/31.1035*1256.00) Cu_4 = (ag_gt*0.434/31.1035*20.38) Cu_5 = Cu_1+Cu_2+Cu_3+Cu_4 cu_eq = (Cu_5/2.97/22.0462) erase (Cu_1) erase (Cu_2) erase (Cu_3) erase (Cu_4) erase (Cu_5) GO ######################################################### !SELWF &IN(xxholes1-d),&WIRETR(laird_cueq025tr),&WIREPT(laird_cueq025pt), &OUT(xx2-d),*X(X),*Y(Y),*Z(Z),@SELECT=3.0, @EXCLUDE=0.0,@TOLERANC=0.001 !EXTRA &IN(xx2-d),&OUT(xx9-d),@APPROX=0.0 rock=3 GO !SORTX &IN(xx9-d),&OUT(ore3-d),*KEY1(BHID),*KEY2(FROM), @BINS=5.0,@ORDER=1.0 ######################################################### !SELWF &IN(xxholes1-d),&WIRETR(para_cueq025tr),&WIREPT(para_cueq025pt), &OUT(xx2-d),*X(X),*Y(Y),*Z(Z),@SELECT=3.0, @EXCLUDE=0.0,@TOLERANC=0.001 !EXTRA &IN(xx2-d),&OUT(xx9-d),@APPROX=0.0 rock=4 GO !SORTX &IN(xx9-d),&OUT(ore4-d),*KEY1(BHID),*KEY2(FROM), @BINS=5.0,@ORDER=1.0 ######################################################################## !HOLMER &IN1(ore3-d),&IN2(ore4-d),&OUT(xx9-d),*BHID(BHID),*FROM(FROM), *TO(TO) !SORTX &IN(xx9-d),&OUT(ore1-d),*KEY1(BHID),*KEY2(FROM), @BINS=5.0,@ORDER=1.0

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######################################################### !EXTRA &IN(ore1-d),&OUT(ore1_tc-d),@APPROX=0.0 if(ag_gt>=18) ag_gt=18 end if(au_gt>=2) au_gt=2 end if(cu_pct>=1.8) cu_pct=1.8 end if(mo_pct>=0.25) mo_pct=0.25 end if(density>=3.8) density=(absent()) end if(density<=1.5) density=(absent()) end GO !COMPDH &IN(ore1_tc-d),&OUT(xx9-d),*BHID(BHID),*FROM(FROM), *TO(TO),*ZONE(rock),@INTERVAL=4.0,@MAXGAP=0.0, @START=0.0,@MODE=0.0 !SORTX &IN(xx9-d),&OUT(ore1_tc-c),*KEY1(BHID),*KEY2(FROM), @BINS=5.0,@ORDER=1.0 !LISTDR XX?,&OUT(XX) !DELETE &IN(XX),@CONFIRM=0.0 !END ############################################################## # # CREATE BASIC BLOCK MODEL # ############################################################### !START block !PROTOM &OUT(proto_15-m),@ROTMOD=0.0 N Y 378400 6357700 0 15 15 15 200 267 120

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!TRIFIL &PROTO(proto_15-m),&WIRETR(topotr), &WIREPT(topopt),&MODEL(xx2-m),@MODLTYPE=3.0, @MAXDIP=0.0,@SPLITS=0.0,@PLANE='XY ',@XSUBCELL=3.0, @YSUBCELL=3.0,@ZSUBCELL=3.0,@RESOL=5.0 !EXTRA &IN(xx2-m),&OUT(xx1-m),@APPROX=0.0 rock=1 density=2.00 mstatus=1 rescat=0 GO !SORTX &IN(xx1-m),&OUT(ovb-m),*KEY1(IJK),@BINS=5.0,@ORDER=1.0 !TRIFIL &PROTO(proto_15-m),&WIRETR(base_ovbtr), &WIREPT(base_ovbpt),&MODEL(xx3-m),@MODLTYPE=3.0, @MAXDIP=0.0,@SPLITS=0.0,@PLANE='XY ',@XSUBCELL=3.0, @YSUBCELL=3.0,@ZSUBCELL=3.0,@RESOL=5.0 !EXTRA &IN(xx3-m),&OUT(xx1-m),@APPROX=0.0 rock=2 density=2.69 mstatus=1 rescat=0 GO !SORTX &IN(xx1-m),&OUT(fresh-m),*KEY1(IJK),@BINS=5.0,@ORDER=1.0 !ADDMOD &IN1(ovb-m),&IN2(fresh-m),&OUT(xx1-m),@TOLERNCE=0.001 !SORTX &IN(xx1-m),&OUT(rock-m),*KEY1(IJK),*KEY2(rock),@BINS=5.0, @ORDER=1.0 ################################################################## # # BASIC MODEL COMPLETED WITH OVERBURDEN & FRESH ROCK # # ROCK-M.DM # ################################################################### !START zones !COPY &IN(rock-m),&OUT(xx2-m),rock=2.0 !SELWF &IN(xx2-m),&WIRETR(laird_cueq025tr),&WIREPT(laird_cueq025pt), &OUT(xxore2-m),*X(XC),*Y(YC),*Z(ZC),@SELECT=3.0, @EXCLUDE=0.0,@TOLERANC=0.001 !EXTRA &IN(xxore2-m),&OUT(xx3-m),@APPROX=0.0 rock=3 GO !SORTX &IN(xx3-m),&OUT(ore1-m),*KEY1(IJK),*KEY2(rock), @BINS=5.0,@ORDER=1.0

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################################################################### !COPY &IN(rock-m),&OUT(xx2-m),rock=2.0 !SELWF &IN(xx2-m),&WIRETR(para_cueq025tr),&WIREPT(para_cueq025pt), &OUT(xxore2-m),*X(XC),*Y(YC),*Z(ZC),@SELECT=3.0, @EXCLUDE=0.0,@TOLERANC=0.001 !EXTRA &IN(xxore2-m),&OUT(xx3-m),@APPROX=0.0 rock=4 GO !SORTX &IN(xx3-m),&OUT(ore2-m),*KEY1(IJK),*KEY2(rock), @BINS=5.0,@ORDER=1.0 !ADDMOD &IN1(rock-m),&IN2(ore2-m),&OUT(xx1-m),@TOLERNCE=0.001 !ADDMOD &IN1(xx1-m),&IN2(ore1-m),&OUT(xx2-m),@TOLERNCE=0.001 !SORTX &IN(xx2-m),&OUT(orerock-m),*KEY1(IJK),*KEY2(rock),@BINS=5.0, @ORDER=1.0 #################################################################### # # Alteration wireframes... HFLD1tr/pt and HFLD2tr/pt !SELWF &IN(orerock-m),&WIRETR(hfld1tr),&WIREPT(hfld1pt), &OUT(xxalt1-m),*X(XC),*Y(YC),*Z(ZC),@SELECT=3.0, @EXCLUDE=0.0,@TOLERANC=0.001 !SELWF &IN(orerock-m),&WIRETR(hfld2tr),&WIREPT(hfld2pt), &OUT(xxalt2-m),*X(XC),*Y(YC),*Z(ZC),@SELECT=3.0, @EXCLUDE=0.0,@TOLERANC=0.001 !EXTRA &IN(xxalt2-m),&OUT(xx2-m),@APPROX=0.0 alt=2 GO !EXTRA &IN(xxalt1-m),&OUT(xx1-m),@APPROX=0.0 alt=1 GO !SORTX &IN(xx2-m),&OUT(xxb-m),*KEY1(IJK),*KEY2(rock), @BINS=5.0,@ORDER=1.0 !SORTX &IN(xx1-m),&OUT(xxa-m),*KEY1(IJK),*KEY2(rock), @BINS=5.0,@ORDER=1.0 !ADDMOD &IN1(xxa-m),&IN2(xxb-m),&OUT(xxalt-m),@TOLERNCE=0.001 !ADDMOD &IN1(orerock-m),&IN2(xxalt-m),&OUT(total-m),@TOLERNCE=0.001 ################################################################ ################################################################## #

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# BASIC MODEL COMPLETED WITH ORE # # TOTAL-M.DM - HAS ALTERATION (1 & 2) AND ZONE (1 & 2) # AND IT ALSO HAS ROCK (1 & 2 & 3 & 4) # ################################################################### !LISTDR XX?,&OUT(XX) !DELETE &IN(XX),@CONFIRM=0.0 #!END ######################################################################## # # Estimation for Laird Zone (rock = 3) # ######################################################################## !START nozon !COPY &IN(total-m),&OUT(xxore1-m),rock=3.0 !ESTIMA &PROTO(xxore1-m),&IN(ore1_tc-c),&SRCPARM(laird1_spar), &ESTPARM(laird_epar),&MODEL(xx2-m),&VMODPARM(laird1_vpar), *X(X),*Y(Y),*Z(Z),*KEY(BHID),@DISCMETH=1.0,@XPOINTS=3.0, @YPOINTS=3.0,@ZPOINTS=3.0,@XDSPACE=1.0,@YDSPACE=1.0, @ZDSPACE=1.0,@PARENT=1.0,@MINDISC=1.0,@COPYVAL=0.0, @FVALTYPE=1.0,@FSTEP=1.0,@XMIN=378400.0,@XMAX=388390.0, @YMIN=6357700.0,@YMAX=6361705.0,@ZMIN=0.0,@ZMAX=1800.0, @XSUBCELL=1.0,@YSUBCELL=1.0,@ZSUBCELL=1.0,@LINKMODE=3.0, @UCSAMODE=2.0,@UCSBMODE=3.0,@UCSCMODE=2.0,@PLANE=1.0, @TOLRNC=0.0,@GRMETHOD=3.0,@PGFIELDS=0.0,@ORDER=3.0 !SORTX &IN(xx2-m),&OUT(xx3-m),*KEY1(IJK), @BINS=5.0,@ORDER=1.0 !EXTRA &IN(xx3-m),&OUT(rescat-m) BV=1-F KE=(BV-KV)/BV*100 ZZ=(BV-KV+abs(LG))/(BV-KV+2*abs(LG)) GO !EXTRA &IN(rescat-m),&OUT(xx8-m) rescat=3 if(ZZ>=0.25) rescat=2 end if(ZZ>=0.95) rescat=1 end GO !EXTRA &IN(xx8-m),&OUT(xx7-m) if(density==absent()) density=2.69 end

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if(cu_ok==absent()) cu_ok=0 end if(mo_ok==absent()) mo_ok=0 end if(au_ok==absent()) au_ok=0 end if(ag_ok==absent()) ag_ok=0 end if(cu_ok<0) cu_ok=0 end GO !EXTRA &IN(xx7-m),&OUT(xx6-m),@APPROX=0.0 Cu_1 = (cu_ok*2.97*22.0462) Cu_2 = (mo_ok*0.609*16.80*22.0462) Cu_3 = (au_ok*0.706/31.1035*1256.00) Cu_4 = (ag_ok*0.434/31.1035*20.38) Cu_5 = Cu_1+Cu_2+Cu_3+Cu_4 cu_eq = (Cu_5/2.97/22.0462) erase (Cu_1) erase (Cu_2) erase (Cu_3) erase (Cu_4) erase (Cu_5) GO !SORTX &IN(xx6-m),&OUT(cf_rock3-m),*KEY1(IJK),*KEY2(zone), @BINS=5.0,@ORDER=1.0 ######################################################################## # # Estimation for Paramount Zone (rock = 4) # ######################################################################## !COPY &IN(total-m),&OUT(xxore2-m),rock=4.0 !ESTIMA &PROTO(xxore2-m),&IN(ore1_tc-c),&SRCPARM(para1_spar), &ESTPARM(para_epar),&MODEL(xx2-m),&VMODPARM(para1_vpar), *X(X),*Y(Y),*Z(Z),*KEY(BHID),@DISCMETH=1.0,@XPOINTS=3.0, @YPOINTS=3.0,@ZPOINTS=3.0,@XDSPACE=1.0,@YDSPACE=1.0, @ZDSPACE=1.0,@PARENT=1.0,@MINDISC=1.0,@COPYVAL=0.0, @FVALTYPE=1.0,@FSTEP=1.0,@XMIN=378400.0,@XMAX=388390.0, @YMIN=6357700.0,@YMAX=6361705.0,@ZMIN=0.0,@ZMAX=1800.0, @XSUBCELL=1.0,@YSUBCELL=1.0,@ZSUBCELL=1.0,@LINKMODE=3.0, @UCSAMODE=2.0,@UCSBMODE=3.0,@UCSCMODE=2.0,@PLANE=1.0, @TOLRNC=0.0,@GRMETHOD=3.0,@PGFIELDS=0.0,@ORDER=3.0 !SORTX &IN(xx2-m),&OUT(xx3-m),*KEY1(IJK), @BINS=5.0,@ORDER=1.0

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!EXTRA &IN(xx3-m),&OUT(rescat-m) BV=1-F KE=(BV-KV)/BV*100 ZZ=(BV-KV+abs(LG))/(BV-KV+2*abs(LG)) GO !EXTRA &IN(rescat-m),&OUT(xx8-m) rescat=3 if(ZZ>=0.25) rescat=2 end if(ZZ>=0.95) rescat=1 end GO !EXTRA &IN(xx8-m),&OUT(xx7-m) if(density==absent()) density=2.69 end if(cu_ok==absent()) cu_ok=0 end if(mo_ok==absent()) mo_ok=0 end if(au_ok==absent()) au_ok=0 end if(ag_ok==absent()) ag_ok=0 end if(cu_ok<0) cu_ok=0 end GO !EXTRA &IN(xx7-m),&OUT(xx6-m),@APPROX=0.0 Cu_1 = (cu_ok*2.97*22.0462) Cu_2 = (mo_ok*0.609*16.80*22.0462) Cu_3 = (au_ok*0.706/31.1035*1256.00) Cu_4 = (ag_ok*0.434/31.1035*20.38) Cu_5 = Cu_1+Cu_2+Cu_3+Cu_4 cu_eq = (Cu_5/2.97/22.0462) erase (Cu_1) erase (Cu_2) erase (Cu_3) erase (Cu_4) erase (Cu_5) GO !SORTX &IN(xx6-m),&OUT(cf_rock4-m),*KEY1(IJK),*KEY2(zone), @BINS=5.0,@ORDER=1.0

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########################################################################### !ADDMOD &IN1(cf_rock3-m),&IN2(cf_rock4-m), &OUT(xx1-m),@TOLERNCE=0.001 !SORTX &IN(xx1-m),&OUT(cf_mike3_2012-m),*KEY1(IJK),*KEY2(rock),*KEY3(rescat), @BINS=5.0,@ORDER=1.0 ########################################################### !ADDMOD &IN1(total-m),&IN2(cf_mike3_2012-m), &OUT(xx3-m),@TOLERNCE=0.001 !SORTX &IN(xx3-m),&OUT(cf_may_2012_final-m),*KEY1(IJK),*KEY2(rock), *KEY3(rescat),@BINS=5.0,@ORDER=1.0 !LISTDR XX?,&OUT(XX) !DELETE &IN(XX),@CONFIRM=0.0 !END ######################################################################## !START nnid # # Nearest Neighbour AND Inverse Distance Squared _ Laird Zone (Rock = 3) # _________________________________________________ !COPY &IN(cf_mike3_2012-m),&OUT(xxore1-m),rock=3.0 !ESTIMA &PROTO(xxore1-m),&IN(ore1_tc-c),&SRCPARM(laird1_spar), &ESTPARM(laird_idnn_epar),&MODEL(xx2-m),&VMODPARM(laird1_vpar), *X(X),*Y(Y),*Z(Z),*KEY(BHID),@DISCMETH=1.0,@XPOINTS=3.0, @YPOINTS=3.0,@ZPOINTS=3.0,@XDSPACE=1.0,@YDSPACE=1.0, @ZDSPACE=1.0,@PARENT=1.0,@MINDISC=1.0,@COPYVAL=0.0, @FVALTYPE=1.0,@FSTEP=1.0,@XMIN=378400.0,@XMAX=388390.0, @YMIN=6357700.0,@YMAX=6361705.0,@ZMIN=0.0,@ZMAX=1800.0, @XSUBCELL=1.0,@YSUBCELL=1.0,@ZSUBCELL=1.0,@LINKMODE=3.0, @UCSAMODE=2.0,@UCSBMODE=3.0,@UCSCMODE=2.0,@PLANE=1.0, @TOLRNC=0.0,@GRMETHOD=3.0,@PGFIELDS=0.0,@ORDER=3.0 !SORTX &IN(xx2-m),&OUT(xxidnn1-m),*KEY1(IJK), @BINS=5.0,@ORDER=1.0 ################################################################################# # Nearest Neighbour AND Inverse Distance Squared _ Paramount Zone (Rock = 4) # _________________________________________________ !COPY &IN(cf_mike3_2012-m),&OUT(xxore2-m),rock=4.0

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!ESTIMA &PROTO(xxore2-m),&IN(ore1_tc-c),&SRCPARM(para1_spar), &ESTPARM(para_idnn_epar),&MODEL(xx2-m),&VMODPARM(para1_vpar), *X(X),*Y(Y),*Z(Z),*KEY(BHID),@DISCMETH=1.0,@XPOINTS=3.0, @YPOINTS=3.0,@ZPOINTS=3.0,@XDSPACE=1.0,@YDSPACE=1.0, @ZDSPACE=1.0,@PARENT=1.0,@MINDISC=1.0,@COPYVAL=0.0, @FVALTYPE=1.0,@FSTEP=1.0,@XMIN=378400.0,@XMAX=388390.0, @YMIN=6357700.0,@YMAX=6361705.0,@ZMIN=0.0,@ZMAX=1800.0, @XSUBCELL=1.0,@YSUBCELL=1.0,@ZSUBCELL=1.0,@LINKMODE=3.0, @UCSAMODE=2.0,@UCSBMODE=3.0,@UCSCMODE=2.0,@PLANE=1.0, @TOLRNC=0.0,@GRMETHOD=3.0,@PGFIELDS=0.0,@ORDER=3.0 !SORTX &IN(xx2-m),&OUT(xxidnn2-m),*KEY1(IJK), @BINS=5.0,@ORDER=1.0 !ADDMOD &IN1(xxidnn1-m),&IN2(xxidnn2-m),&OUT(xx7-m),@TOLERNCE=0.001 !SORTX &IN(xx7-m),&OUT(xx6-m),*KEY1(IJK), @BINS=5.0,@ORDER=1.0 !EXTRA &IN(xx6-m),&OUT(xx9-m) if(sg_nn==absent()) density=2.69 end if(cu_nn==absent()) cu_nn=0 end if(mo_nn==absent()) mo_nn=0 end if(au_nn==absent()) au_nn=0 end if(ag_nn==absent()) ag_nn=0 end if(cu_id==absent()) cu_id=0 end if(mo_id==absent()) mo_id=0 end if(au_id==absent()) au_id=0 end if(ag_id==absent()) ag_id=0 end if(sg_nn==absent()) sg_nn=2.69 end GO !SORTX &IN(xx9-m),&OUT(cf_idnn_2012-m),*KEY1(IJK),@BINS=5.0,@ORDER=1.0 !ADDMOD &IN1(total-m),&IN2(cf_idnn_2012-m), &OUT(xx3-m),@TOLERNCE=0.001

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!SORTX &IN(xx3-m),&OUT(cf_idnn_final-m),*KEY1(IJK),*KEY2(rock), *KEY3(rescat),@BINS=5.0,@ORDER=1.0 !LISTDR XX?,&OUT(XX) !DELETE &IN(XX),@CONFIRM=0.0 ########################################################### !START TONS !COPY &IN(cf_mike3_2012-m),&OUT(xxore2-m),rock=4.0 !TONGRAD &IN(xxore2-m),&OUT(xx1),&CSVOUT(PARA3_25_95),*KEY1(rescat), *DENSITY(density),*F1(cu_eq),*F2(cu_ok),*F3(mo_ok), *F4(au_ok),*F5(ag_ok),@FACTOR=1.0,@DENSITY=1.0, @COGSTEP=0.05 !COPY &IN(cf_mike3_2012-m),&OUT(xxore1-m),rock=3.0 !TONGRAD &IN(xxore1-m),&OUT(xx1),&CSVOUT(LIARD3_25_95),*KEY1(rescat), *DENSITY(density),*F1(cu_eq),*F2(cu_ok),*F3(mo_ok), *F4(au_ok),*F5(ag_ok),@FACTOR=1.0,@DENSITY=1.0, @COGSTEP=0.05 !TONGRAD &IN(cf_mike3_2012-m),&OUT(xx1),&CSVOUT(MIKE3_25_95),*KEY1(rescat), *DENSITY(density),*F1(cu_eq),*F2(cu_ok),*F3(mo_ok), *F4(au_ok),*F5(ag_ok),@FACTOR=1.0,@DENSITY=1.0, @COGSTEP=0.05 !START TONS1 !COPY &IN(cf_mike3_2012-m),&OUT(xx2-m),rock=4.0 !COPY &IN(xx2-m),&OUT(xxore2-m),rescat<2.5 !TONGRAD &IN(xxore2-m),&OUT(xx1),&CSVOUT(PARA3_MI), *DENSITY(density),*F1(cu_eq),*F2(cu_ok),*F3(mo_ok), *F4(au_ok),*F5(ag_ok),@FACTOR=1.0,@DENSITY=1.0, @COGSTEP=0.05 !COPY &IN(cf_mike3_2012-m),&OUT(xx1-m),rock=3.0 !COPY &IN(xx1-m),&OUT(xxore1-m),rescat<2.5 !TONGRAD &IN(xxore1-m),&OUT(xx1),&CSVOUT(LIARD3_MI), *DENSITY(density),*F1(cu_eq),*F2(cu_ok),*F3(mo_ok), *F4(au_ok),*F5(ag_ok),@FACTOR=1.0,@DENSITY=1.0, @COGSTEP=0.05 !LISTDR XX?,&OUT(XX) !DELETE &IN(XX),@CONFIRM=0.0 !END ######################################################################## !END

A P P E N D I X D

S C H A F T C R E E K V A R I O G R A P H Y

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Appendix D – Experimental Variography – Liard Zone

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Appendix D – Experimental Variography – Paramount Zone

A P P E N D I X E

S C H A F T C R E E K M O D E L P L A N S A N D S E C T I O N S

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Block Model Validation – Liard Zone – Plans

850 m ASL – Cu Grades

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850 m ASL – Mo Grades

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850 m ASL – Au Grades

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850 m ASL – Ag Grades

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Block Model Validation – Liard Zone – Sections

6359500 N – Cu Grades

of 16

6359500 N – Mo Grades

of 16

6359500 N – Au Grades

of 16

6359500 N – Ag Grades

of 16

Block Model Validation – Paramount Zone – Plans

800 m ASL – Cu Grades

of 16

800 m ASL – Mo Grades

of 16

800 m ASL – Au Grades

of 16

800 m ASL – Ag Grades

of 16

Block Model Validation – Paramount Zone – Sections

6361000 N – Cu Grades

of 16

6361000 N – Mo Grades

of 16

6361000 N – Au Grades

of 16

6361000 N – Ag Grades

A P P E N D I X F

S C H A F T C R E E K S W A T H P L O T S

of 8

Appendix F – Schaft Creek Swath Plots

Copper

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Cu%

Cu% by Northing (m)

cu_ok cu_id cu_nn

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

Cu%

Cu% by Easting (m)

cu_ok cu_id cu_nn

of 8

Molybdendum

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Cu%

Cu% by Elevation (m)

Series1 Series2 cu_nn

0

0.005

0.01

0.015

0.02

0.025

0.03

0.035

Mo%

Mo% by Northing (m)

mo_ok mo_id mo_nn

of 8

0

0.005

0.01

0.015

0.02

0.025

0.03

Mo%

Mo% by Easting (m)

mo_ok mo_id mo_nn

0

0.005

0.01

0.015

0.02

0.025

0.03

0.035

0.04

0.045

0.05

Mo%

Mo% by Elevation (m)

Series1 Series2 Series3

of 8

Gold

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Au (g

pt)

Au (gpt) by Northing (m)

au_ok au_id au_nn

0

0.05

0.1

0.15

0.2

0.25

0.3

Au (g

pt)

Au (gpt) by Easting (m)

au_ok au_id au_nn

of 8

Silver

0

0.1

0.2

0.3

0.4

0.5

0.6

Au (g

pt)

Au (gpt) by Elevation (m)

au_ok au_id au_nn

0

0.5

1

1.5

2

2.5

3

Ag (g

pt)

Ag (gpt) by Northing (m)

ag_ok ag_id ag_nn

of 8

0

0.5

1

1.5

2

2.5

Ag (g

pt)

Ag (gpt) by Elevation (m)

ag_ok ag_id ag_nn

0

0.5

1

1.5

2

2.5

3

Ag (g

pt)

Ag (gpt) by Easting (m)

ag_ok ag_id ag_nn

of 8

Density

2.58

2.6

2.62

2.64

2.66

2.68

2.7

2.72

2.74

SG (g

/cc)

SG by Northing (m)

SG_id SG_nn

2.5

2.55

2.6

2.65

2.7

2.75

2.8

2.85

SG (g

/cc)

SG by Easting (m)

SG_id SG_nn

of 8

2.63

2.64

2.65

2.66

2.67

2.68

2.69

2.7

2.71

2.72

SG (g

/cc)

SG by Elevation (m)

Series1 Series2

A P P E N D I X G

G R A D E – T O N N A G E C U R V E S

of 24

Grade – Tonnage Curves – Liard Zone

Measured – Cu

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5OK tonnes (t) 127,193,721 126,859,329 126,020,347 123,779,785 119,122,898 109,876,225 96,347,804 80,450,235 64,593,720 49,608,101OK Cu% 0.307 0.308 0.310 0.313 0.320 0.332 0.350 0.372 0.396 0.423

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

Gra

de (

Cu%

)

Res

ourc

e to

nnes

(t)

Cut-off Grade (Cu%)


Cu% : Measured Resource


Measured Resource Estimate

23 May 2012

LIARD ZONE

of 24

Indicated – Cu

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5OK tonnes (t) 635,732,714 633,046,112 614,567,158 570,084,066 497,089,456 405,879,294 310,468,398 226,396,694 158,404,537 101,924,933OK Cu% 0.234 0.235 0.240 0.252 0.268 0.289 0.313 0.338 0.365 0.397

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

Gra

de (

Cu%

)

Res

ourc

e to

nnes

(t)

Cut-off Grade (CuEQ%)


Cu% : Indicated Resource


Indicated Resource Estimate

23 May 2012

LIARD ZONE

of 24

Inferred – Cu

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5OK tonnes (t) 385,285,911 376,758,961 357,461,112 300,350,584 219,607,861 140,421,557 79,118,235 40,980,379 20,840,817 8,795,606OK Cu% 0.167 0.170 0.175 0.191 0.212 0.237 0.265 0.290 0.313 0.338

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

Gra

de (

Cu%

)

Res

ourc

e to

nnes

(t)



Cu% : Inferred Resource


Inferred Resource Estimate

23 May 2012

LIARD ZONE

of 24

Measured – Mo

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5OK tonnes (t) 127,193,721 126,859,329 126,020,347 123,779,785 119,122,898 109,876,225 96,347,804 80,450,235 64,593,720 49,608,101OK Mo% 0.016 0.016 0.016 0.017 0.017 0.018 0.019 0.021 0.023 0.024

0.000

0.005

0.010

0.015

0.020

0.025

0.030

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

Gra

de (

Mo%

)

Res

ourc

e to

nnes

(t)



Mo % : Measured Resource



23 May 2012

LIARD ZONE

of 24

Indicated - Mo

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5OK tonnes (t) 635,732,714 633,046,112 614,567,158 570,084,066 497,089,456 405,879,294 310,468,398 226,396,694 158,404,537 101,924,933OK Mo% 0.013 0.013 0.013 0.014 0.015 0.016 0.018 0.020 0.022 0.023

0.000

0.005

0.010

0.015

0.020

0.025

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

Gra

de (

Mo%

)

Res

ourc

e to

nnes

(t)



Mo % : Indicated Resource



23 May 2012

LIARD ZONE

of 24

Inferred – Mo

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5OK tonnes (t) 385,285,911 376,758,961 357,461,112 300,350,584 219,607,861 140,421,557 79,118,235 40,980,379 20,840,817 8,795,606OK Mo% 0.011 0.011 0.011 0.012 0.014 0.016 0.018 0.021 0.022 0.024

0.000

0.005

0.010

0.015

0.020

0.025

0.030

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

Gra

de (

Mo%

)

Res

ourc

e to

nnes

(t)



Mo % : Inferred Resource



23 May 2012

LIARD ZONE

of 24

Measured – Au

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5OK tonnes (t) 127,193,721 126,859,329 126,020,347 123,779,785 119,122,898 109,876,225 96,347,804 80,450,235 64,593,720 49,608,101OK Au (g/t) 0.250 0.251 0.252 0.254 0.259 0.267 0.278 0.291 0.306 0.326

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

Gra

de (

Au g

/t)

Res

ourc

e to

nnes

(t)



Au g/t : Meaured Resource



23 May 2012

LIARD ZONE

of 24

Indicated – Au


0.00

0.05

0.10

0.15

0.20

0.25

0.30

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

Gra

de (

Au g

/t)

Res

ourc

e to

nnes

(t)



Au g/t : Indicated Resource



23 May 2012

LIARD ZONE

of 24

Inferred – Au


0.00

0.05

0.10

0.15

0.20

0.25

0.30

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

Gra

de (

Au g

/t)

Res

ourc

e to

nnes

(t)



Au g/t : Inferred Resource



23 May 2012

LIARD ZONE

of 24

Measured - Ag

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5OK tonnes (t) 127,193,721 126,859,329 126,020,347 123,779,785 119,122,898 109,876,225 96,347,804 80,450,235 64,593,720 49,608,101OK Ag (g/t) 1.755 1.756 1.759 1.769 1.788 1.826 1.876 1.944 2.024 2.118

0.00

0.50

1.00

1.50

2.00

2.50

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

Gra

de (

Ag g

/t)

Res

ourc

e to

nnes

(t)



Ag g/t : Measured Resource



23 May 2012

LIARD ZONE

of 24

Indicated - Ag


0.00

0.50

1.00

1.50

2.00

2.50

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

Gra

de (

Ag g

/t)

Res

ourc

e to

nnes

(t)



Ag g/t : Indicated Resource



23 May 2012

LIARD ZONE

of 24

Inferred - Ag


0.00

0.50

1.00

1.50

2.00

2.50

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

Gra

de (

Ag g

/t)

Res

ourc

e to

nnes

(t)



Ag g/t : Inferred Resource



23 May 2012

LIARD ZONE

of 24

Grade – Tonnage Curves – Paramount Zone

Measured – Cu

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50OK tonnes (t) 20,785,347 20,776,268 20,594,940 20,161,329 18,804,973 16,953,197 14,186,278 11,821,133 9,683,664 8,037,133OK Cu% 0.311 0.311 0.313 0.318 0.330 0.346 0.372 0.397 0.424 0.448

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Gra

de (

Cu%

)

Res

ourc

e to

nnes

(t)

Cut-off Grade (Cu%)


Cu% : Measured Resource



23 May 2012

PARAMOUNT ZONE

of 24

Indicated – Cu

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50OK tonnes (t) 469,964,395 469,922,925 467,372,370 451,825,186 418,387,869 364,550,731 302,193,978 238,155,616 184,903,489 140,442,171OK Cu% 0.276 0.276 0.277 0.282 0.292 0.308 0.326 0.349 0.371 0.394

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

Gra

de (

Cu%

)

Res

ourc

e to

nnes

(t)

Cut-off Grade (Cu%)


Cu% : Indicated Resource



23 May 2012

PARAMOUNT ZONE

of 24

Inferred – Cu

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50OK tonnes (t) 239,848,195 239,848,195 239,730,171 237,715,239 231,062,480 215,404,892 185,344,133 152,079,728 118,075,344 86,118,608OK Cu% 0.282 0.282 0.282 0.283 0.287 0.294 0.308 0.324 0.341 0.361

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

Gra

de (

Cu%

)

Res

ourc

e to

nnes

(t)

Cut-off Grade (Cu%)


Cu% : Inferred Resource



23 May 2012

PARAMOUNT ZONE

of 24

Measured – Mo

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50OK tonnes (t) 20,785,347 20,776,268 20,594,940 20,161,329 18,804,973 16,953,197 14,186,278 11,821,133 9,683,664 8,037,133OK Mo% 0.022 0.022 0.022 0.023 0.024 0.025 0.027 0.029 0.030 0.032

0.000

0.005

0.010

0.015

0.020

0.025

0.030

0.035

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Gra

de (

Mo%

)

Res

ourc

e to

nnes

(t)



Mo % : Measured Resource



23 May 2012

PARAMOUNT ZONE

of 24

Indicated - Mo

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50OK tonnes (t) 469,964,395 469,922,925 467,372,370 451,825,186 418,387,869 364,550,731 302,193,978 238,155,616 184,903,489 140,442,171OK Mo% 0.021 0.021 0.021 0.022 0.023 0.024 0.026 0.028 0.029 0.031

0.000

0.005

0.010

0.015

0.020

0.025

0.030

0.035

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

Gra

de (

Mo%

)

Res

ourc

e to

nnes

(t)



Mo % : Indicated Resource



23 May 2012

PARAMOUNT ZONE

of 24

Inferred – Mo

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50OK tonnes (t) 239,848,195 239,848,195 239,730,171 237,715,239 231,062,480 215,404,892 185,344,133 152,079,728 118,075,344 86,118,608OK Mo% 0.022 0.022 0.022 0.023 0.023 0.023 0.024 0.025 0.026 0.027

0.020

0.021

0.022

0.023

0.024

0.025

0.026

0.027

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

Gra

de (

Mo%

)

Res

ourc

e to

nnes

(t)



Mo % : Inferred Resource



23 May 2012

PARAMOUNT ZONE

of 24

Measured – Au


0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Gra

de (

Au g

/t)

Res

ourc

e to

nnes

(t)



Au g/t : Measured Resource



23 May 2012

PARAMOUNT ZONE

of 24

Indicated – Au


0.00

0.05

0.10

0.15

0.20

0.25

0.30

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

Gra

de (

Au g

/t)

Res

ourc

e to

nnes

(t)



Au g/t : Indicated Resource



23 May 2012

PARAMOUNT ZONE

of 24

Inferred – Au


0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

Gra

de (

Au g

/t)

Res

ourc

e to

nnes

(t)



Au g/t : Inferred Resource



23 May 2012

PARAMOUNT ZONE

of 24

Measured - Ag


0.00

0.50

1.00

1.50

2.00

2.50

3.00

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Gra

de (

Ag g

/t)

Res

ourc

e to

nnes

(t)



Ag g/t : Measured Resource



23 May 2012

PARAMOUNT ZONE

of 24

Indicated - Ag


0.00

0.50

1.00

1.50

2.00

2.50

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

Gra

de (

Ag g

/t)

Res

ourc

e to

nnes

(t)



Ag g/t : Indicated Resource



23 May 2012

PARAMOUNT ZONE

of 24

Inferred - Ag


0.00

0.50

1.00

1.50

2.00

2.50

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

Gra

de (

Ag g

/t)

Res

ourc

e to

nnes

(t)



Ag g/t : Inferred Resource



23 May 2012

PARAMOUNT ZONE

A P P E N D I X H

G R A D E – M E T A L C U R V E S

of 24

Grade – Metal Curves – Liard Zone

Measured – Cu

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5Contained Cu (t) 390,733 390,600 390,038 387,671 381,080 364,831 337,120 298,972 255,638 209,614OK Cu% 0.307 0.308 0.310 0.313 0.320 0.332 0.350 0.372 0.396 0.423

-

0.100

0.200

0.300

0.400

0.500

0.600

0.700

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Gra

de (C

u%)


Con

tain

ed C

u (t)

Mineral Inventory Grade-Metal Curve

Contained Cu (t) : Measured Resource



23 May 2012

LIARD ZONE



23 May 2012

LIARD ZONE

of 24

Indicated – Cu

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5Contained Cu (t) 1,488,713 1,487,532 1,475,755 1,433,882 1,333,364 1,172,700 971,227 766,193 578,314 404,925OK Cu% 0.234 0.235 0.240 0.252 0.268 0.289 0.313 0.338 0.365 0.397

-

0.100

0.200

0.300

0.400

0.500

0.600

0.700

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Gra

de (C

u%)


Con

tain

ed C

u (t)


Contained Cu (t) : Indicated Resource



23 May 2012

LIARD ZONE



23 May 2012

LIARD ZONE

of 24

Inferred – Cu


-

0.100

0.200

0.300

0.400

0.500

0.600

0.700

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Gra

de (C

u%)


Con

tain

ed C

u (t)


Contained Cu (t) : Inferred Resource



23 May 2012

LIARD ZONE



23 May 2012

LIARD ZONE

of 24

Measured – Mo

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5Contained Mo (t) 20,693 20,688 20,661 20,543 20,268 19,543 18,307 16,603 14,541 12,081OK Mo% 0.016 0.016 0.016 0.017 0.017 0.018 0.019 0.021 0.023 0.024

-

0.005

0.010

0.015

0.020

0.025

0.030

0

5,000

10,000

15,000

20,000

25,000

Gra

de (M

o%)

Con

tain

ed M

o (t)



Contained Mo (t) : Measured Resource



23 May 2012

LIARD ZONE

of 24

Indicated - Mo


-

0.005

0.010

0.015

0.020

0.025

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Gra

de (M

o%)

Con

tain

ed M

o (t)



Contained Mo (t) : Indicated Resource



23 May 2012

LIARD ZONE

of 24

Inferred – Mo


-

0.005

0.010

0.015

0.020

0.025

0.030

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Gra

de (M

o%)

Con

tain

ed M

o (t)



Contained Mo (t) : Inferred Resource



23 May 2012

LIARD ZONE

of 24

Measured – Au

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5Contained Au (oz) 1,023,178 1,022,488 1,019,557 1,011,306 990,639 943,473 860,365 752,060 635,203 519,755OK Au (g/t) 0.250 0.251 0.252 0.254 0.259 0.267 0.278 0.291 0.306 0.326

-

0.050

0.100

0.150

0.200

0.250

0.300

0.350

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Gra

de (A

u g/

t)

Con

tain

ed A

u (o

z)



Contained Au (oz) : Measured Resource



23 May 2012

LIARD ZONE

of 24

Indicated – Au

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5Contained Au (oz) 3,709,310 3,703,313 3,632,447 3,433,249 3,114,131 2,703,990 2,219,110 1,733,144 1,301,603 899,222OK Au (g/t) 0.181 0.182 0.184 0.187 0.195 0.207 0.222 0.238 0.256 0.274

-

0.050

0.100

0.150

0.200

0.250

0.300

0.350

0.400

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Gra

de (A

u g/

t)

Con

tain

ed A

u (o

z)



Contained Au (oz) : Indicated Resource



23 May 2012

LIARD ZONE

of 24

Inferred – Au

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5Contained Au (oz) 1,868,318 1,866,538 1,783,284 1,524,056 1,167,992 803,337 488,186 283,286 159,541 72,922OK Au (g/t) 0.151 0.154 0.155 0.158 0.165 0.178 0.192 0.215 0.238 0.258

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Gra

de (A

u g/

t)

Con

tain

ed A

u (o

z)



Contained Au (oz) : Inferred Resource



23 May 2012

LIARD ZONE

of 24

Measured - Ag

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5Contained Ag (oz) 7,175,502 7,162,450 7,128,691 7,040,561 6,848,150 6,449,182 5,810,257 5,028,300 4,202,747 3,378,836OK Ag (g/t) 1.755 1.756 1.759 1.769 1.788 1.826 1.876 1.944 2.024 2.118

0.00

0.50

1.00

1.50

2.00

2.50

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Gra

de (A

g g/

t)

Con

tain

ed A

g (o

z)



Contained Ag (oz) : Measured Resource



23 May 2012

LIARD ZONE

of 24

Indicated - Ag


0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Gra

de (A

g g/

t)

Con

tain

ed A

g (o

z)



Contained Ag (oz) : Indicated Resource



23 May 2012

LIARD ZONE

of 24

Inferred - Ag

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5Contained Ag (oz) 17,966,814 17,943,413 17,149,108 14,424,834 10,705,011 7,115,356 4,170,468 2,325,049 1,256,993 559,423OK Ag (g/t) 1.450 1.481 1.492 1.494 1.516 1.576 1.640 1.765 1.876 1.978

0.00

0.50

1.00

1.50

2.00

2.50

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

Gra

de (A

g g/

t)

Con

tain

ed A

g (o

z)



Contained Ag (oz) : Inferred Resource



23 May 2012

LIARD ZONE

of 24

Grade – Metal Curves – Paramount Zone

Measured – Cu


-

0.100

0.200

0.300

0.400

0.500

0.600

0.700

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Gra

de (C

u%)


Con

tain

ed C

u (t)


Contained Cu (t) : Measured Resource



23 May 2012

LIARD ZONE



23 May 2012

PARAMOUNT ZONE

of 24

Indicated – Cu

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50Contained Cu (t) 1,296,257 1,296,232 1,293,937 1,275,592 1,223,444 1,122,259 986,506 830,474 686,630 553,635OK Cu% 0.276 0.276 0.277 0.282 0.292 0.308 0.326 0.349 0.371 0.394

-

0.100

0.200

0.300

0.400

0.500

0.600

0.700

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Gra

de (C

u%)


Con

tain

ed C

u (t)


Contained Cu (t) : Indicated Resource



23 May 2012

LIARD ZONE



23 May 2012

PARAMOUNT ZONE

of 24

Inferred – Cu


-

0.100

0.200

0.300

0.400

0.500

0.600

0.700

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Gra

de (C

u%)


Con

tain

ed C

u (t)


Contained Cu (t) : Inferred Resource



23 May 2012

LIARD ZONE



23 May 2012

PARAMOUNT ZONE

of 24

Measured – Mo


-

0.005

0.010

0.015

0.020

0.025

0.030

0.035

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Gra

de (M

o%)

Con

tain

ed M

o (t)



Contained Mo (t) : Measured Resource



23 May 2012

PARAMOUNT ZONE

of 24

Indicated - Mo


-

0.005

0.010

0.015

0.020

0.025

0.030

0.035

0.040

0

20,000

40,000

60,000

80,000

100,000

120,000

Gra

de (M

o%)

Con

tain

ed M

o (t)



Contained Mo (t) : Indicated Resource



23 May 2012

PARAMOUNT ZONE

of 24

Inferred – Mo


0.020

0.021

0.022

0.023

0.024

0.025

0.026

0.027

0

10,000

20,000

30,000

40,000

50,000

60,000

Gra

de (M

o%)

Con

tain

ed M

o (t)



Contained Mo (t) : Inferred Resource



23 May 2012

PARAMOUNT ZONE

of 24

Measured – Au

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50Contained Au (oz) 130,719 130,708 130,387 129,189 125,053 118,524 107,045 96,232 85,032 75,136OK Au (g/t) 0.196 0.196 0.197 0.199 0.207 0.217 0.235 0.253 0.273 0.291

-

0.050

0.100

0.150

0.200

0.250

0.300

0.350

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Gra

de (A

u g/

t)

Con

tain

ed A

u (o

z)



Contained Au (oz) : Measured Resource



23 May 2012

PARAMOUNT ZONE

of 24

Indicated – Au

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50Contained Au (oz) 2,589,511 2,589,488 2,585,621 2,550,692 2,469,894 2,316,208 2,098,546 1,816,994 1,535,858 1,267,216OK Au (g/t) 0.171 0.171 0.172 0.176 0.184 0.198 0.216 0.237 0.258 0.281

-

0.050

0.100

0.150

0.200

0.250

0.300

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Gra

de (A

u g/

t)

Con

tain

ed A

u (o

z)



Contained Au (oz) : Indicated Resource



23 May 2012

PARAMOUNT ZONE

of 24

Inferred – Au

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50Contained Au (oz) 1,576,462 1,576,462 1,576,281 1,571,638 1,557,758 1,517,697 1,406,523 1,252,291 1,064,629 843,870OK Au (g/t) 0.204 0.204 0.205 0.206 0.210 0.219 0.236 0.256 0.280 0.305

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Gra

de (A

u g/

t)

Con

tain

ed A

u (o

z)



Contained Au (oz) : Inferred Resource



23 May 2012

PARAMOUNT ZONE

of 24

Measured - Ag

0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50Contained Ag (oz) 1,281,970 1,281,650 1,273,935 1,255,293 1,193,105 1,103,894 964,821 843,394 727,791 631,966OK Ag (g/t) 1.918 1.919 1.924 1.937 1.973 2.025 2.115 2.219 2.338 2.446

0.00

0.50

1.00

1.50

2.00

2.50

3.00

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Gra

de (A

g g/

t)

Con

tain

ed A

g (o

z)



Contained Ag (oz) : Measured Resource



23 May 2012

PARAMOUNT ZONE

of 24

Indicated - Ag


0.00

0.50

1.00

1.50

2.00

2.50

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Gra

de (A

g g/

t)

Con

tain

ed A

g (o

z)



Contained Ag (oz) : Indicated Resource



23 May 2012

PARAMOUNT ZONE

of 24

Inferred - Ag


0.00

0.50

1.00

1.50

2.00

2.50

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Gra

de (A

g g/

t)

Con

tain

ed A

g (o

z)



Contained Ag (oz) : Inferred Resource



23 May 2012

PARAMOUNT ZONE

technical report and resource estimate on the schaft creek ... · the schaft creek mine project...

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